Business: Bundesbank: Economy loses drive – US tariffs burden US tariffs

According to the Bundesbank, the German economy lost ride again in spring. The gross domestic product may have stagnated in the second quarter, she writes in her current monthly report. In the first three months, the German economy was surprisingly grown by 0.4 percent because companies in anticipation of US tariffs preferred deliveries and jumped in industrial production. Now the advanced effects expired, according to the Bundesbank

At the same time, she warns of “additional headwind” for the German export industry through US customs policy. US President Donald Trump announced tariffs from 30 percent on imports from the EU from August 1st if there was no agreement with Brussels. If the tariffs come into force as well as threatened, this would be a “considerable economic down -down risk” for the German economy, according to the Bundesbank.

Nagel wants quick agreement with Trump – but not at any price

Bundesbank President Joachim Nagel had previously said that the customs uncertainty of economic development is a shame. A quick agreement with the USA must be the goal of the EU, he told the “Handelsblatt”. However, he restricted that this should be “not at all costs”.

The Bundesbank sees the economic basic tendency in Germany. The mood in the economy, such as the IFO business climate, has brightened up with the prospect of billions in investments by the federal government. A boost for the economy will only come to a delay.

At the same time, the industrial companies remained weakly busy, while consumers put their money together and the construction industry in the crisis. The labor market, on the other hand, has so far remained stable.

In its forecast of June, the Bundesbank has already predicted stagnation for this year. In 2025, the German economy threatens the third year without growth in a row – this has never been the case in the history of the Federal Republic.