Bundesbank Warns: Trump's Tariffs Threaten German Economy
The Bundesbank's head warns that U.S. President Trump's planned tariffs could negate Germany's economic recovery, risking a recession by 2025. European leaders aim to negotiate reduced tariffs before the August deadline, while the EU considers its response. The tariff uncertainty impacts investor confidence in the U.S. dollar.
The head of Germany's Bundesbank has sounded a stark warning about the potential repercussions of U.S. President Donald Trump's proposed import tariffs on European goods. If the 30% tariffs are enacted, they could erase Germany's economic gains and potentially trigger a recession by 2025.
Bundesbank President Joachim Nagel, speaking at a G20 finance meeting in Durban, highlighted the risks, noting that even modest economic growth forecasts could be undermined by the tariffs. European leaders are working to negotiate a reduction in the tariffs ahead of Trump's August deadline.
In light of the situation, the EU is considering employing the anti-coercion instrument, allowing retaliation against economic pressure. Meanwhile, Nagel stressed the importance of central bank independence amid U.S. pressure, pointing to potential opportunities for investment in Europe.
(With inputs from agencies.)
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