The US President’s trade policies, according to the head of the German Federal Employment Agency, Andrea Nahles, have severe consequences for the German labor market. “We must assume that the tariffs will cost us 90,000 jobs within a year” Nahles told the Süddeutsche Zeitung in an interview.
Nahles based her statement on a study by the Institute for Labor Market and Vocational Research, which examined the effects of a 25% tariff rate. “The problem is the lack of planning, which is having a massive impact. It’s hindering companies from making investments, hiring people and training them” she said. “The erratic trade policy of the US is putting a strain on the German labor market.”
Nahles also commented on the debate surrounding the recipients of the basic income. She expressed disappointment at the way the discussion had unfolded over the past year and a half, stating that it was “rather a sad affair.” She emphasized that there was no large number of total refusers, citing a figure of around 23,000 cases in the past year, out of millions of people receiving the basic income, in which payments were reduced due to a lack of cooperation. While the Federal Employment Agency considers sanctions to be sensible, Nahles believes they are not necessary for the majority of the people the agency interacts with.