Expected drop in sales
After Trump’s tariffs: Nutcracker from the arch gift before crisis
04.04.2025 – 1:30 p.m.Reading time: 2 min.
Small companies also suffer from Trump’s new tariffs. The Erzgebirge could be hardened by the taxes.
With his customs increases, US President Donald Trump not only sends shock waves to large German corporations such as Adidas or Volkswagen-they also range into small manual factories in the Ore Mountains. Whether smoking men, Christmas pyramids or nutcrackers: Erzgebirge handicrafts are in demand in the United States.
“There are companies that achieve 90 percent of their sales with the US business,” said the managing director of the association of the Erzgebirge artisan and toy manufacturer, Frederic Günther, the Reuters news agency. “They specialize in the American market. There are long -term partnerships. This is our most important export country.”
Many of the approximately 200 companies in Saxony, mainly turner and wooden toy maker, with their directly or indirectly employed 2,000 employees, are now threatening a loss of sales. “Yes, there will be probably,” fears Günther. Because the manufacturers are forced to raise their prices on EU goods due to the 20 percent tariffs imposed by Trump. “We would first have to continue to calculate them to the end customers or retailers, since we cannot carry the 20 percent increase ourselves,” said the association representative.
His hope: So far, price increases have always been supported by customers. However, the largest price jump so far took place after the Corona crisis and at the beginning of the Russian war in Ukraine, when energy and materials became significantly more expensive. “At that time we had to increase prices by up to eight percent,” said Günther.
The year had started well for the region: the Erzgebirge handicrafts were recognized by the UNESCO as a “intangible cultural heritage”. “The Erzgebirge handicraft is a centuries -old practice that includes a large number of craftsmanship disciplines,” said UNESCO. “In particular, turning, carving and painting wooden figures are characteristic of the region.”
Günther explains that nutcrackers in particular are so well received in America: “There are many regions with a high proportion of German emigrants – from Chicago to the west coast.” In addition, you have been working with large retail chains in the USA for a long time. “Erzgebirge handicrafts can therefore also be found in New York department stores, but also on the popular Christmas markets,” added the managing director. “There are also many collectors and clubs. This is now endangered.”
The companies could not adjust to Trump’s customs hammer. “At the beginning of the year we have our biggest international trade fair, the Christmasworld in Frankfurt. Here we accept our orders,” said Günther. The goods will then be exported in summer. The volume always depends on the pre -orders of the trade fairs. “In January, the tariffs were just not clearly communicated.”
The manufacturers now hope that the Americans will also keep their shelf from them during price increases. Your hope: “There are no alternatives to Erzgebirge handicrafts,” said Günther, adding: “In the end, nobody wins at this trade conflict.”
