US Tariffs Spark Debate Over Economic Course in Germany
The chair of the German left-wing party, Sahra Wagenknecht, has called for a fundamental shift in the country’s economic course in response to new US tariffs. The former politician advocates for closer ties with the BRICS states and a return to Russian gas supplies.
The new US tariffs, imposed by President Donald Trump, will apply a 20% rate to EU imports, including those from Germany. In response, the European Commission has announced a series of countermeasures, with the first set to take effect on April 15 and the second on May 15, according to Trade Commissioner Maroš Šefčovič.
Wagenknecht told the Bild newspaper that, “If the US is going to impose tariffs, we need to intensify our economic relations with the BRICS states.” She believes that only by doing so can Germany, as an export nation, survive, given that a significant portion of its value creation is tied to the industry.
At the same time, Wagenknecht is calling for an end to Germany’s dependence on the US, both digitally and in terms of energy. A return to Russian pipeline gas could be part of the solution, as it would “significantly relieve consumers and companies and be a stimulus for the economy.”
Wagenknecht also warns of a further economic downturn, stating that, “If CDU leader Friedrich Merz does not take action, a third consecutive recession is looming: the Merzession. Even if the stock markets calm down, a decline in the world economy could put the German economy on life support.”
Germany’s economy has already been weakened, with a 0.2% contraction in the previous year, marking the second consecutive recession. The government has already lowered its growth forecast for 2025 from 1.1 to 0.3 percent. Wagenknecht is urging, “After two recessions, Germany is already the sick man of Europe. If the global economy now shrinks and the ‘Trumpcession’ sets in, Germany will be hit particularly hard. Therefore, a plan against the economic crisis and a stimulus package are needed.