Trump's tariffs could be tough to crack for a German nutcracker maker focused on the US

GEIR MOULSON and MARKUS SCHREIBER

Wed, Apr 16, 2025, 9:59 AM 4 min read

MARIENBERG, Germany (AP) — U.S. President Donald Trump's tariffs threaten to become a tough nut to crack in an unlikely place — a small company whose factory nestled deep in the hills of eastern Germany produces painstakingly hand-crafted nutcrackers that are snapped up by American collectors.

Alongside classic fare such as a variety of Santas, Scrooge and the Mad Hatter, specifically American-themed and event-related collectibles are a staple at Steinbach Volkskunst. There's Uncle Sam, the Statue of Liberty, Mickey Mouse and a coronation-themed tribute to Britain's King Charles III among many others.

This week, a limited-edition creation titled “Resolute Desk of the President,” featuring a seated Trump-like figure signing a “presidential proclamation,” is taking shape at Steinbach's factory on the edge of the small town of Marienberg, near the Czech border.

A nutcracker typically takes around a week to produce as its wooden parts are turned, painted, dried, assembled and in many cases dressed in a costume. In this case, the president's blond mane is combed and given a shot of hairspray as a finishing touch. The price tag is over $300, fairly typical for the more elaborate of the company's smaller-scale nutcrackers.

An uncertain outlook

For a firm that exports more than 95% of its products and sells more than 90% of what it makes in the United States, Trump's tariffs are a significant potential headache. The U.S. initially imposed a 20% tariff on goods from the European Union — in which Germany, better known for industries such as auto manufacturing — has the biggest economy. But the administration suspended that for 90 days while leaving a baseline 10% tariff in place.

Ahead of the announcement, “we were able to think through various scenarios and think about what would happen or not, but I think that ultimately everyone was somehow caught cold,” owner and manager Rico Paul says. “But it's the same for everyone ... so we all have to cope with it.”

Steinbach, with about 35 manufacturing employees and five in office functions, produces 30,000-40,000 items a year and, according to Paul, could sell many more than that. He says the company is lucky to have many longstanding wholesale customers who placed their orders in January for nutcrackers to be delivered throughout the year until Christmas, lessening the immediate concerns.

“There are no direct effects for us yet,” Paul says. “No customer has canceled his order, but we will see next year whether the prices have perhaps become too expensive and there is less demand.”