17 July 2025 | Euro

Trump's plan to impose 30% tariffs on EU imports could slow Germany's GDP growth — IMK

Trump's plan to impose 30% tariffs on EU imports could slow Germany's GDP growth — IMK

Starting in August, the US plans to impose 30% tariffs on imports from the EU, which could slow Germany's economic growth by 0.25 percentage points this year and next. The IMK institute made this forecast, pointing to the negative impact of trade tensions on Germany's export-oriented economy. Previously, Germany's GDP was expected to grow by 0.2% in 2025 and 1.5% in 2026. However, due to the tariffs, these figures could fall to zero this year and to 1.2% next year.

The institute notes that increased government investment and defense spending may partially offset the negative impact of tariffs. Nevertheless, the United States remains a key market for German exports. Until last year, the US accounted for nearly 10% of all German exports.

According to a survey conducted by the VDMA association, more than half of German engineering companies do not expect sales to increase this year, and 30% predict a decline. At the same time, one-third of companies consider the North American market favorable. VDMA chief economist Johannes Hernandt says that 2025 will be a challenging year for most companies and that sustained sales growth may not return until 2026.

Period: 12.05.2026 Expectation: 500 pips
Go long on Brent crude with $114.5 in sight
Today at 11:47 AM 17
Period: 05.05.2026 Expectation: 890 pips
Buy AUDUSD on pullback with 0.72190 target ahead of Australian CPI and Fed decision
Today at 11:10 AM 13
Gold buy
Period: 15.05.2026 Expectation: 5000 pips
Invest in gold once it breaks above $4,700
Today at 10:47 AM 24
Period: 15.05.2026 Expectation: 500 pips
Buying GBPUSD up to 1.36650
Today at 10:47 AM 8
Period: 28.05.2026 Expectation: 300 pips
Invest in Tesla stocks with $410 in view
Today at 09:18 AM 7
Period: 05.05.2026 Expectation: 3500 pips
BTCUSD sell-off targets $74,000 amid weak demand and technical resistance
Today at 07:07 AM 16
Go to forecasts