German export businesses like Steinbach Volkskunst are struggling to adapt to the new 15% tariff imposed by the US government, which has disrupted their traditional direct-to-consumer shipping model. The company’s CEO, Rico Paul, said the biggest concern wasn’t price, but instability caused by unpredictable policy changes.
Since Trump’s inauguration, the E.U. had prepared for retaliation, and a deal was reached in late July to reduce tariffs to 15%. However, in August, Trump ended the “de minimis” exemption, requiring new paperwork and increasing customs costs. As a result, prices have risen by 25% due to the tariffs and increased wages.
Despite price increases, American customers remain loyal, with Steinbach nutcrackers selling well, especially those with pop culture themes. However, the company is seeking a work-around to eliminate paperwork and delays for individual buyers, which may lead to higher costs being passed on to customers.
The new regulations have hit German exporters hard, particularly those trading in memories rather than volume, like baker Bäckerei Gnauck, who has seen his stollen shipments become unprofitable due to increased customs charges. The lack of predictability is causing frustration among business owners, who simply want a stable environment for their exports.
In an effort to adapt, Steinbach plans to build a warehouse in Pennsylvania and hire staff, while passing on additional costs to customers. The move aims to insulate the business from further regulatory whiplash but may lead to higher prices for consumers.
Source: https://www.washingtonpost.com/world/2025/12/21/us-tariffs-take-bite-out-germanys-iconic-nutcracker-industry