The German federal government has taken the US trade policy of President Donald Trump into consideration in its latest economic forecast, according to its own statements, but apparently not in its entirety. The uncertainties were taken into account, but “they were of course not quantified in the sense that”, a spokesperson for the Federal Ministry of Economics said on Monday in Berlin, in response to a query from the German News Agency.
The federal government had announced last week that it expects a growth of the gross domestic product of only 0.3 percent for the year 2025. This could be in danger if a trade war escalates, with the threat of a third consecutive year of shrinkage looming. Economics Minister Robert Habeck (Greens) had advocated for everything to be done to avoid US tariffs. US President Donald Trump had heated up the conflict over the weekend and initially announced tariffs against Canada, Mexico and China.
Chancellor Olaf Scholz (SPD) made it clear on Monday morning at the EU summit in Brussels that the EU must respond to the US trade policies with its own and will. “But it should be the perspective and the goal that we proceed in a way that leads to cooperation”, the Chancellor added.