A Letter To The New German Chancellor
Dear Herr Merz, President Trump is about to impose swingeing tariffs with the goal of reducing the US’s bilateral trade deficit with Germany and the EU. And I know, the temptation is to respond in kind, and demonstrate that you have agency. Don’t. It is stupid and counter-productive, and the impact on European and German voters would be severe. Instead, I would like to suggest an alternative approach: do absolutely nothing. Why? Well, three reasons. Firstly, the impact on US demand for European…