Germany‘s central bank president, Joachim Nagel, warned that US tariffs on imported goods could push Europe’s largest economy into another recession. In an exclusive interview with BBC World Service on March 13, 2025, Nagel stated that Germany’s economy has contracted over the past two years and could face further recession this year if tariffs are implemented.
- Tariffs could lead Germany into recession.
- Deutsche Bundesbank forecasts stagnation without tariffs.
- EU retaliates against US tariffs on imports.
- Trump's tariff policy viewed as outdated.
- German consumers face higher prices for imports.
- Germany's economic policy undergoing significant changes.
In recent years, Germany’s economy has struggled, contracting for two consecutive years. Nagel indicated that the imposition of tariffs could lead to a recession in 2025, while the absence of such tariffs might allow for minimal growth of about 0.2%. He emphasized that tariffs create a situation where “there are only losers,” supporting the EU’s response to US tariffs on steel imports.
Critical details include:
- Germany’s economy has faced contraction for two years.
- US tariffs could lead to a recession in 2025.
- The EU is implementing retaliatory tariffs on US products starting April 1.
Nagel criticized US tariff policies as outdated and detrimental, suggesting that a global trade war could result from ongoing retaliatory measures. He expressed hope that the US would recognize the negative impact of tariffs on its economy, allowing for a resolution that benefits all parties involved. Additionally, German consumers may face increased prices for American products, including orange juice and bourbon, as a direct consequence of these tariffs.
In conclusion, the ongoing tariff dispute between the US and EU poses significant risks to Germany’s economic stability. With potential for recession and rising consumer prices, the situation remains dynamic as global trade relations evolve.
