Bundesbank Warns Trump's Tariffs Pose Major Threat to German Economy

Economic projections suggest significant risks to growth, inflation, and jobs if U.S. trade policies escalate under Trump.

The Bundesbank predicts Germany's GDP could drop by up to 1.5 percentage points by 2027 if U.S. tariffs increase as proposed by Trump.
Trump's trade policies include raising tariffs on Chinese imports to 60% and imposing 10% tariffs on goods from Germany and other nations.
Germany, heavily reliant on exports to the U.S., faces potential job losses, particularly in industrial sectors, due to reduced trade volume.
The Bundesbank warns that while a weaker euro might improve export competitiveness, it would not offset the broader negative economic impacts.
U.S. tariffs are also expected to harm the American economy through higher costs and inflation, according to Bundesbank analysis.