Joachim Nagel, the President of Germany’s central bank, warns that ongoing U.S. tariffs could push Germany, Europe’s largest economy, into a recession. In a recent podcast interview, he noted, ‘Now we are in a world with tariffs, so we could expect maybe a recession for this year if the tariffs are really coming.’

The impact of U.S. tariffs is not just a local issue; it resonates globally, especially for countries heavily intertwined with America through trade. Germany’s economic stability could be at risk, particularly if these tariffs escalate further.

With these uncertainties, businesses and the financial markets are keeping a close eye on policy announcements and tariffs coming from Washington. Stakeholders will need to prepare for potential outcome scenarios as trade relations evolve. Nagel’s cautionary remarks reflect the growing concern among economists about the ramifications of protectionist policies.