Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Ecuadorian President Daniel Noboa's motorcade comes under fire in Ecuador
Al Mayadeen's correspondent in Lebanon: Israeli quadcopter drops two shells on cafe in Houla town in South Lebanon
Informed source to Al Mayadeen: SDF Commander-in-Chief Mazloum Abdi demands that al-Sharaa approve the establishment of an autonomous region similar to the Kurdistan Region of Iraq.
Israeli media: Three drones launched from Yemen toward Eilat in span of 20 minutes.
Qatari Foreign Ministry: "Israel" should have already ceased fire under Trump plan for Gaza
Qatari Foreign Ministry: Release of Israeli captives will mark end of war in Gaza in accordance with Trump plan.
Israeli media: Security incident in Gaza Strip classified as serious results in six wounded soldiers so far, two critically injured.
Al Mayadeen's correspondent in South Lebanon: Israeli drone strike targets vehicle in Deir Ames, Tyre governorate.
Lebanese Ministry of Health: Final toll from airstrike on car in Zebdine, Nabatieh District: Two martyrs, four injured
Egyptian media: Indirect talks between Hamas and Israelis begin in Sharm el-Sheikh.

Germany cuts GDP forecast to zero, citing Trump tariffs

  • By Al Mayadeen English
  • Source: News Websites
  • 24 Apr 2025 19:10
4 Min Read

Germany expects zero GDP growth in 2025, with Economy Minister Habeck blaming US tariffs under Trump. German exports and trade hit by global economic shifts.

Listen
  • x
  • Germany's Vice Chancellor and Economy and Climate Minister Robert Habeck speaks during the last parliament session ahead of national elections at the Bundestag parliament in Berlin, Germany, Feb. 11, 2025 (AP)
    Germany's Vice Chancellor and Economy and Climate Minister Robert Habeck speaks during the last parliament session ahead of national elections at the Bundestag parliament in Berlin, Germany, Feb. 11, 2025 (AP)

Germany’s economy is projected to record zero growth in 2025, outgoing Economy Minister Robert Habeck announced on Thursday, attributing the stagnation to US President Donald Trump’s tariff policies.

“The US trade policy of threatening and imposing tariffs has a direct impact on the German economy, which is very export-oriented,” Habeck said while presenting the latest forecast. The German government had initially anticipated a modest GDP growth of 0.3 percent for 2025, but has now revised the figure to zero for Europe's largest economy, which has already contracted over the past two years.

The government also lowered its growth outlook for 2026 from 1.1 percent to 1 percent.

Trump’s tariffs hit German exports hard

The United States, Germany's largest trading partner, absorbed about 10 percent of German exports last year, including automobiles and chemicals. Under Trump, Washington has imposed a 10 percent tariff on European Union exports, after initially threatening a 20 percent rate.

“Tariffs and trade policy turbulence are hitting the German economy harder than other nations,” Habeck noted. “We depend on open markets, functioning markets, and a globalised world. That’s what has made this country rich,” he added at a press conference in Berlin.

Political uncertainty and lack of stimulus deepen stagnation

Related News

Von der Leyen faces no-confidence vote for 'surrendering Europe' to US

Trump’s tariffs begin to squeeze US shoppers’ wallets: FT

German GDP declined by 0.3 percent in 2023 and 0.2 percent in 2024, driven by surging energy prices following Russia's full-scale invasion of Ukraine and intensified competition from China in key sectors such as automobiles and machinery.

“I would say that we are going through a paradigm shift when it comes to the basic earners for the German economy,” Habeck said. “Our big trade partners, China and the USA, and our neighbour, Russia, are causing us problems.”

The minister also criticized the lack of economic initiatives since the collapse of Chancellor Olaf Scholz’s coalition government in November, which led to new elections scheduled for February.

“For half a year now, hardly any initiative has been taken to counteract the stagnation through legislation or measures,” Habeck said.

Future hopes pinned on new investments

Looking ahead, Habeck expressed hope that a new debt-financed spending package, amounting to hundreds of billions of euros, would help revive the German economy in 2025 under the incoming Chancellor Friedrich Merz.

“It’s good that investments are finally being made,” Habeck said, noting that they “can offset the slump or the pressure on foreign trade to some extent.” The forecast factored in this “positive impetus” and assumed no further escalation of the tariff situation.

German industry calls for swift EU action on tariffs

Habeck urged future German leaders to bolster European unity and independence to better compete with global economic powers. “Made in Germany is over,” he declared. “We are a single market and it is through that market that we will bring investment back into Europe.”

“We must support the EU in taking a clear position, in negotiating confidently with the USA, and at the same time helping it be prepared to impose effective counter-measures.”

“The situation of the German economy is serious,” said Helena Melnikov, head of the German Chamber of Industry and Commerce. She called on the next federal government to urgently resolve the EU-US tariff dispute, stressing that time is running out.

Read more: US no longer sole guarantor of European security: Hegseth

  • US tariffs
  • United States
  • Europe
  • Germany
  • trump tariffs
  • German economy
  • Donald Trump
  • European Union

Most Read

Tucker Carlson speaks at a memorial for Charlie Kirk, Sunday, September 21, 2025, at State Farm Stadium in Glendale, Arizona (AP)

Tucker Carlson: Israeli officers gave orders on Iran inside Pentagon

  • Politics
  • 2 Oct 2025
A Hamas fighter in combat fatigues stands before the ceremony for the handover of Israeli captives to the Red Cross in Nuseirat, central Gaza Strip, Saturday, February 22, 2025 (AP)

Hamas responds to Trump plan, backs Gaza withdrawal, exchange

  • Politics
  • 3 Oct 2025
ap

'Israel' pays influencers $7K per post to whitewash Gaza genocide

  • Politics
  • 1 Oct 2025
Ships that are part of the Global Sumud Flotilla heading to Gaza are anchored off the coast of of Sidi Bou Saïd in Tunis, Tunisia, Tuesday, September 9, 2025. (AP Photo/Anis Mili)

Global Sumud Flotilla accuses Italy of sabotage, vows to sail on

  • Politics
  • 1 Oct 2025

Coverage

All
War on Gaza

Read Next

All
In this May 20, 20201, photo Marine Gen. Frank McKenzie, the head of US Central Command, arrives in Baghdad, Iraq (AP)
Politics

US spent $33 billion on post-Oct.7 genocide, wars, Brown Uni reports

Speaker of the House Mike Johnson, R-La., holds a news conference to mark the seventh day of the government shutdown, at the Capitol in Washington, Tuesday, Oct. 7, 2025. (AP)
Politics

US troops face unpaid wages as government shutdown drags on

Mourners wave Hezbollah and a Palestinian flag during the funeral of Hezbollah former leader Sayyed Hassan Nasrallah and his successor Sayyed Hashem Safieddine in the Sports City Stadium in Beirut, Lebanon, Sunday, February 23, 2025 (AP)
Politics

Hezbollah voices support for Gaza, Resistance on October 7 anniversary

Al-Aqsa Flood restored Palestinian cause on the global stage: Hamas
Politics

Al-Aqsa Flood restored Palestinian cause on the global stage: Hamas

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS