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“Breaking Down Trump’s Tariffs: How a German Nutcracker Maker Navigates the US Market”

April 16, 2025
Trump’s tariffs could be tough to crack for a German nutcracker maker focused on the US

In a quaint German town near the Czech border, the small family-owned company Steinbach Volkskunst faces uncertainty due to President Donald Trump’s tariffs. Known for their meticulously handcrafted nutcrackers, including American-themed collectibles, the company exports over 95% of its products to the United States. The tariffs, initially set at 20% and later reduced to 10%, pose a significant challenge for a business deeply reliant on the American market.

Despite the potential impact of the tariffs, Steinbach remains optimistic, with owner Rico Paul considering strategies like setting up a logistics facility in the U.S. to mitigate the effects. The company’s unwavering commitment to producing its goods in Germany, particularly in the Erzgebirge region, known for its cultural heritage, is a key aspect of its identity that will not change.

With a rich history dating back nearly 80 years, including a revival after facing bankruptcy, Steinbach’s focus on the U.S. market remains steadfast. Despite challenges, the company’s strong customer relationships and high demand for its products give reason for optimism.

Notably, Steinbach’s recent creation, the “Resolute Desk of the President” nutcracker, humorously appeals for tariff exemption, highlighting the company’s creativity and resilience in the face of economic uncertainties. As Steinbach continues to navigate the complexities of international trade, its dedication to quality craftsmanship and longstanding traditions remains unwavering, underscoring its commitment to serving American collectors and preserving its unique cultural heritage.

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