Gas2 Week in Review: German Carmakers on the Hot Seat and More
In an amazing performance at a NATO function in Brussels, Donald Trump announced to the assembled dignitaries, “The Germans are bad, very bad. Look at the millions of cars they sell in the U.S. We will stop this.” Trump’s clear misunderstanding of international trade could have devastating effects on the U.S. economy. The MIT Observatory of Economic Complexity, which visualizes international trade data, says that Germany has a $252 billion positive trade balance, with the majority of goods being cars. 12% of its exports are directly related to German automakers, with the U.S. as largest consumer of German cars. Not only were German automakers who heard Trump’s remarks horrified— so, too, were economists were seemed shocked at the U.S. leader’s lack of basic understanding of international trade agreements.