The German government has revised its economic growth forecast to zero, attributing this downturn mainly to US President Trump's trade policies. Outgoing Economy Minister Robert Habeck indicated that the imposition of US tariffs—especially on imports like automotive and pharmaceutical products—is severely affecting Germany, which relies heavily on exports. The nation's economy saw a contraction in both 2023 and 2024, and the Bundesbank expressed concerns over potential stagnation or even a slight recession in 2025, exacerbated by fierce competition from China and issues with other key trading partners.
"The US trade policy of threatening and imposing tariffs has a direct impact on the German economy, which is very export-oriented," Habeck said.
"There is above all one reason for this, namely Donald Trump's trade policy and the effects of the trade policy on Germany," outgoing Economy Minister Robert Habeck said.
"Our big trade partners, China and the USA, and our neighbor, Russia, are causing us problems," Habeck said.
"The best-case scenario is stagnation. He could not rule out 'a slight recession for 2025,'" said Bundesbank President Joachim Nagel.
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