Missing planning security
Economist: Customs conflict could drive Germany into recession
The customs disputes registered by the United States stir up in the United States. But the trade conflict is not only threatened with a downturn.
According to the economist Marcel Fratzscher 2025, the international customs conflict could once again give Germany an economic downturn in 2025. The President of the German Institute for Economic Research (DIW) does not find the higher taxes for exports to the USA, but the lack of planning security for German companies, particularly problematic. “This should continue to weaken the investments of the German companies and could drive the German economy into recession again this year,” said Fratzscher of the Funke media group.
Fratzscher warns of hysterical reactions
It is important to avoid growing uncertainty due to an escalation of the trade conflict: “We should not react hysterically to the threat of trade tariffs by Donald Trump, but soberly and de -escalating,” advised Fratzscher. The new federal government has to strengthen Europe’s top priority in dealing with trade conflicts. “We Germans have to understand that we have a small economy and that our interests can only protect as part of a strong Europe,” he said.
The German economy is in a phase of weakness. After two years of recession, mini growth has been expected for 2025.
dpa
Source: Stern
