Expert predicts negative consequences for Germany's economy after Trump's duties

The trade policy of US President Donald Trump, aimed at imposing tariffs and duties on exports of products from other countries, could have a very negative impact on the German economy. Clemens Füst, chairman of the German Economic Institute (Ifo), said on January 27.

"The consequences could be very bad. Germany's economy is export-oriented. But we see that exports are now experiencing difficulties," the expert said in an interview with the US agency Bloomberg, it is published on YouTube.

According to the Ifo index, German companies report a decline in incoming orders. Thus, the German export industry is currently experiencing difficulties, noted Füst. According to him, the duties will only further aggravate the economic situation of the country.

The interlocutor of the agency emphasized that the further fate of the economic conjuncture of the FRG depends on Trump's policy and the reaction of European politicians to his actions.

The expert characterized the country's economy as "stagnant", as its growth rate is minimal. Füst explained that given the increased uncertainty due to Trump and the upcoming German elections, companies will wait before investing, so getting out of stagnation is not possible.

"So it will be another difficult year," the German economist concluded.

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Earlier on January 20, Christian Democratic Union (CDU) leader Friedrich Merz said that the new US administration will be a challenge for Europe. He called to accept Trump's team with confidence and above all to look after their interests.

On January 16, German Chancellor Olaf Scholz said that the German government may be short of €26 billion in 2025. He promised to finance Ukraine with loans.

Before that, on November 20, The Washington Post (WP) reported that the trade duties that Trump is going to impose could seriously damage the countries of the European Union (EU). According to economists, Trump's "protectionist measures" may cause further recession in Europe and complicate relations between the allies.