The President of the Ifo Institute, Clemens Fuest, warns of great dangers for the German financial system in view of the specter of new US tariffs. The economist fears critical penalties if the EU imposes tariffs on US merchandise. Fuest instructed the “Bild” newspaper: “If this turns into a new trade war, Germany will face a recession in 2026.”
US President Donald Trump introduced that he would improve tariffs on vehicles and vehicles from the European Union from 15 to 25 %. The new charges ought to apply from subsequent week. Fuest emphasised that the deliberate tariff will increase would hit the German auto trade in an already troublesome state of affairs.
According to the report, Jens Südekum, advisor within the Federal Ministry of Finance, suggested ready. First, it must be checked whether or not the introduced US tariffs would truly be levied. In this case, he known as for “appropriate countermeasures” from the EU.
https://www.welt.de/wirtschaft/article69f6773823e6b3dbf3c970ff/handelskonflikt-drohender-zollstreit-mit-den-usa-ifo-praesident-sieht-rezessionsgefahr-fuer-2026.html