Economy
Bundesbank: US tariffs could bring further recession
Getting the German economy out of the crisis is one of the most urgent goals of the federal government. But the customs conflict could destroy all efforts.
According to the Bundesbank, the tariffs announced by US President Donald Trump could once again plunge the German economy into a recession. This year the gross domestic product could shrink, and the expected growth of 0.7 percent “will be completely” eaten up in the coming year, said Bundesbank President Joachim Nagel on the sidelines of a G20 meeting in Durban in South Africa.
The companies already felt enormous uncertainty that loaded them on them like a kind of quiet tax. At the same time, Nagel said that a customs cleaning should not come at any price. “And this is also where my desire to do my request to the US side not to play a bit with the situation. Because in the end, our all prosperity is at stake if you may do economic policy here that can do great damage.”
German economic output had shrunk slightly in the past two years, in the first quarter of 2025 the gross domestic product increased slightly.
Klingbeil: No deal at any price
Trump has promised tariffs from 30 percent to imports from the EU from August 1st. His finance minister Scott Bessent was activated in Durban at a meeting of the economically strong western industrialized nations (G7).
It was very agreed that a solution had to be found, Finance Minister Lars Klingbeil reported. At the same time, the SPD politician emphasized: “There will be no deal at all costs.” The EU is always ready to take decisive countermeasures to protect jobs and companies in Europe.
dpa
Source: Stern
