> Tariffs are paid by the consumers in the country that has the tariffs (ie Tariffs on China by US is paid by people in the US). It primarily hits those that spend most of their income on consumption, which is those that are poorer.
But consumers are already paying for the current situation in Germany. Instead of tariff, Germany decided to put downward pressure on salaries via the Hartz reforms. The effects are not far from tariff in that it shifts money from consumption towards savings/investments. That's why Germany has such a large trade surplus. And like tariff, it's a losing solution. In the end, your currency should reevaluate. Germany is just lucky to have the euro.
For a long time, I was really puzzled by why the German European partners stuck with Germany in the currency union were so tolerant of pretty much being spoiled. But after Macron, I think it's pretty clear: the richest are far too happy to be able to present lowering salaries and degrading work conditions as an inescapable part of modern economic competition. They are after all on the right side of the rising inequality.
But consumers are already paying for the current situation in Germany. Instead of tariff, Germany decided to put downward pressure on salaries via the Hartz reforms. The effects are not far from tariff in that it shifts money from consumption towards savings/investments. That's why Germany has such a large trade surplus. And like tariff, it's a losing solution. In the end, your currency should reevaluate. Germany is just lucky to have the euro.
For a long time, I was really puzzled by why the German European partners stuck with Germany in the currency union were so tolerant of pretty much being spoiled. But after Macron, I think it's pretty clear: the richest are far too happy to be able to present lowering salaries and degrading work conditions as an inescapable part of modern economic competition. They are after all on the right side of the rising inequality.