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Trump’s “Russian Sanctions” Have Destroyed the German Automobile Industry

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German automakers announce 100,000 job cut.

Germany’s largest union concludes German auto industry “faces the risk of total collapse” from the energy shortage caused by Trump’s “Russian sanctions” and war against Iran for Israel.

Volkswagen’s stock price has fallen 75%. 

German auto plants are moving to produce armaments for Israel, indicating the Israelization of another economy.

The question naturally arises: Why did German governments sell out Germany in order to support stupid policies of the White House Fool?

Meanwhile the price of diesel fuel in the US has risen 76% from one year ago. 

The price of Washington’s subservience to Netanyahu will continue to rise. Will Americans show their acceptance of these unnecessary costs on November 3? 

Dr. Paul Craig Roberts, September 23, 2026


“Trump doesn’t really understand the concept or the benefits of international division of labor,” said Bratzel, adding that Trump’s so-called America First agenda could do “serious damage to US prosperity” in the end.

US carmaker Ford Motor suspended its annual guidance earlier this month because of uncertainty around Trump’s tariffs. It said the levies would cost the company about $1.5 billion (€1.3 billion) in adjusted earnings before interest and taxes.

“It’s still too early to fully understand our competitors’ responses to these tariffs,” Ford CEO Jim Farley told analysts. “It’s clear, however, that in this new environment, automakers with the largest US footprint will have a big advantage.”

Exploring new markets

Given the upheaval caused by Trump’s trade policy, German carmakers need new strategies.

Dudenhöffer advises restraint, opting for a “wait and see” approach that “doesn’t react just yet.” Because the situation is more uncertain than ever, he suggested focusing future investments in Asia instead.

“The most important consequence is greater geographic diversification of production,” echoed Dohse. “Companies should expand their manufacturing across more countries to be less dependent on the trade rules of any one nation.”

Bratzel cited the principle of “build where you sell” — meaning manufacturing in the markets where the vehicles are sold. He said the trend is already underway, with “more and more value creation being shifted to the regions where the vehicles are marketed.”  (Deutsche Welle) (original in German

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This article was originally published on the author’s blog.

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration, associate editor and columnist for the Wall Street Journal, Business Week’s first outside columnist, columnist for the Scripps Howard News Service, contributor to the editorial page of the Los Angeles Times, and columnist for the main French and Italian newspapers, and for Creators Syndicate in Los Angeles.

He is a regular contributor to Global Research.

Featured image: Wolfsburg Volkswagen Plant (CC BY-SA 3.0)


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