28 March | Euro

Bloomberg Economics: US tariffs on car imports threaten Germany's economic recovery

Bloomberg Economics: US tariffs on car imports threaten Germany's economic recovery

According to estimates of the Bloomberg Economics experts, the US President Donald Trump's decision to impose 25% tariffs on all car imports may reduce economic growth in Germany by about 0.5% GDP. At the same time, analysts believe that the German economy's growth rate this year will amount to only 0.2%.

Germany has long relied on a relatively stable global trade environment, with exports playing a significant role in the country's GDP expansion. However, weakening global demand has already crippled its manufacturing sector, triggering a two-year-long contraction in German industrial production. As Bloomberg analysts note, the imposition of US tariffs will put additional pressure on the country's manufacturing sector.

However, the agency experts believe the situation may improve due to plans of the incoming Chancellor Friedrich Merz to allocate hundreds of billions of euros for defense, infrastructure and climate projects. But the positive effect of these measures is not expected to be seen until next year at the earliest. According to forecasts, economic growth in Germany may accelerate to 1.1% in 2026.

Bloomberg Economics summarizes that in the near term, the country’s economic recovery is still at risk due to trade tensions.

Brent sell
Period: 17.07.2025 Expectation: 150 pips
OPEC's gloomy forecast drags Brent crude prices lower
Today at 08:53 AM 6
Period: 17.07.2025 Expectation: 26000 pips
Institutional investor demand could push ETHUSD to 3,000
Yesterday at 10:38 AM 34
Period: 16.07.2025 Expectation: 2000 pips
USDJPY prepares to retest 148 Level
Yesterday at 08:19 AM 38
Period: 16.07.2025 Expectation: 900 pips
NVIDIA shares rise amid global AI infrastructure investments
09 July 2025 66
Period: 15.07.2025 Expectation: 800 pips
Breaking downtrend could push USDCAD to 1.375
09 July 2025 44
Period: 14.07.2025 Expectation: 1600 pips
Upcoming “Crypto Week” to boost bitcoin prices
08 July 2025 109
Go to forecasts