The German economy will not develop in 2025, the government announced on Thursday, reducing a previous prediction while President Trump’s prices billed in the greatest economy in Europe, which stagnates it for the third consecutive year.
In January, the German government predicted economic growth of 0.3%, but Mr. Trump’s prices of 25% on imported cars, steel and aluminum threaten to hit the economy focused on Germany hard, as well as turbulence on the markets caused by Yo-Yo in the way the prices were imposed.
“The German economy, which is already suffering from a low foreign request and reduced competitiveness, is particularly affected by American trade policy,” the German economy minister in Berlin said on Thursday.
A new German government takes power after the next expected chancellor, Friedrich Merz, was sworn in on May 6. He has promised to stimulate growth, helped by more loose borrowing limits which will allow him to spend strongly on defense and infrastructure.
