Germany, Europe's largest economy, is in a vulnerable position due to the possible imposition of US trade tariffs. These measures threaten to slow down the country's economic growth for years to come, especially against the backdrop of a two-year recession, said Bundesbank President Joachim Nagel. The German economy is experiencing an industrial crisis caused by the displacement of German products by subsidized goods from China. In addition, the situation is aggravated by a sharp increase in energy prices, which reduces the competitiveness of the country. The Bundesbank's analysis showed that tariff barriers would harm not only Germany, but also the United States. Nagel noted that Germany's strong export orientation makes it particularly sensitive to these threats. Forecasts indicate that by 2027, the country's economic output will decrease by 1.5% of the expected level. At the same time, GDP growth is projected at 0.2% in 2023 and 0.8% in 2026, but a 1.5% hit in three years could exacerbate the recession. Nagel also noted that the tariffs would be negative for the United States. An increase in the cost of intermediate goods and a decrease in purchasing power will outweigh the possible benefits for the American industry.
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