3 ms·
Germany doesn't have a trade surplus with the US. That's the myth US government spreads regularly to justify protectionism. The surplus exists only because the
by tut-urut-utut 5y ago
Germany doesn't have a trade surplus with the US. That's the myth US government spreads regularly to justify protectionism.
The surplus exists only because the biggest digital companies (Google, MS, IBM, FB, ...) are not counted for in the USA-German trade balance.
- JumpCrisscross 5y ago> surplus exists only because the biggest digital companies (Google, MS, IBM, FB, ...) are not counted for in the USA-German trade balance Do these transactions result in uncounted dollars flowing back to the U.S.?
- tut-urut-utut 5y ago> Do these transactions result in uncounted dollars flowing back to the U.S.? Yes, but not directly. Unless you count that all those profits are actually trade surplus with Ireland, Luxembourg and other tax heavens, and not with Germany, France and other countries where those "digital goods and services" are sold.
- merb 5y agowell isn't most money these internet companies do, put into offshore markets, so neither positive for the us and the eu?
- sedeki 5y agoWhy is that?
- adventured 5y agoThere was a $67 billion trade gap, $60b to $127b, between the US and Germany for 2019. The biggest US digital/tech companies aren't remotely coming close to having enough unaccounted for business in Germany that could fill in $67 billion.