The Trump Administration just dialed up the heat on the European Union with an 11 billion dollar tariff threat. He is now focused on Germany, and Angela Merkel and her car export machine that could come under pressure from both the US and China. Trump for some reason wants to shut down the flow of German cars to the planet, not just the US but to the entire planet. He cannot achieve this but he can disrupt flow enough to damage BMW, Mercedes and Audi. Keep reading.
Trump has made it crystal clear that he will escalate the transatlantic tensions as he believes that Germany and some of the countries in Europe have taken advantage of the US and have received a free ride on NATO and the Bretton-Woods System. Trump has raised tensions in World Bank and other institutions that have divided the US and its partners.
Jean-Claude Junker, the President of the European Commission, struck a deal with President Trump to start trade negotiations instead of imposing more tariffs on Europe. Trump agreed but the preliminary trade talks have not progressed and it is becoming clear that Trump likes Junker less than he likes the freeloading Merkel who leverages the US military and US supported trading system – Trump is on a path to ensure the that as the global system collapses, Germany pays a heavy price.
On her visit to the US, Merkel tried to dictate to Trump her view of history – Trump give her a bill showing that Germany owes the US billions and reminded her that she does not have export markets anymore. He let her know that she must pay for access.