TAORMINA, Sicily (AP) – President Donald Trump has said, the Germans are “bad” for with a large trade surplus with the United States, the attention on a controversial issue at a summit of the heads of government of the world, in which the trade is already a sticking point.
As the meeting of leaders of seven wealthy democracies have collected for difficult talks on trade and climate change, The German Spiegel reported that Trump had told the EU leaders the day before, the Germans were “bad, very bad.”
White House economic Advisor, Gary Cohn sought to clarify the situation on Friday, noting that the President, ” she said very bad on the trade, but he has no problem with Germany.”
Trump, Cohn added, had pointed out that “his father is from Germany” and said: “`I don ‘ T have to be a problem in Germany. I have a problem with the German trade.”
The President of the European Union’s executive Commission, Jean-Claude Juncker, said Trump was “not aggressive” in his comments and called the report “exaggerated.”
It is not the first time Trump the target in Germany, the trade is can.
In January, he said that German car manufacturers like BMW, could the U.S. duties of up to 35 percent, if you are setting up plants in Mexico instead of the USA and try to export, the cars for the USA
Trump has said he wants the trade to be a balanced and fair as well as free, so that it benefits American workers and businesses. He focused on the relations, in which the U.S. buys more than he sells-as is the case with Germany and China.
Germany’s trade imbalance with the US is part of his great General, surpluses with the rest of the world. Germany in the past year, a current account surplus — the broadest measure of trade and investment flows — 8.7 percent of annual economic output. The country benefits from a competitive goods, such as cars and industrial machines that are in demand in the rest of the world. A weak euro has contributed to the export performance. Germany may not, however, do much to the euro: the exchange rate has been driven down by worries, as the debt problems in Greece and the policy of the European Central Bank.
Further complicates the picture is invest, some big German companies also adjust and produce in the United States. BMW, for example, its X5 all-terrain power cart in Spartanburg, South Carolina, and transmits it to the rest of the world from there.
The European Commission says the German surplus is eligible for a mix of competitive and less obvious factors such as a surplus of savings over investments in an ageing society.
A German government spokesman says surpluses in the balance of trade, as they provoke Trump’s ire are the result of market factors and are “neither good nor bad.”
Spokesman Georg Streiter reported comment directly on Trump’s comments. He said that, in General, Germany’s current account surplus, the economic factors that are largely outside the government’s direct control.
He said it was caused “by factors that are not or at least not directly influenced by economic or financial policy measures in Germany.” This includes not only the exchange rate of the euro, but the price of oil or changes in the demographics.