The German government expressed pessimism on Monday about a "bumpy road ahead" for Europe's largest economy, citing U.S. tariffs as a major concern.

In its annual economic report presented to journalists, Germany's Ministry of Economic Affairs stated that the tariffs imposed – and partially delayed – by the U.S. administration "have fueled global uncertainty, disrupted international markets, and dampened economic forecasts."

The report noted these challenges are hitting Germany as it struggles to recover from past crises, including the lingering effects of the COVID-19 pandemic.

Key Concerns Highlighted:

1. Industrial Sector Slowdown

   • Germany's crucial manufacturing industry remains "volatile"

   • Supported by data from leading economic institutes, including Ifo (Germany's largest economic research institute)

2. Weak Consumer Demand

   • Domestic consumption also shows signs of strain

3. Growth Forecast Slashed

   • Leading German economic institutes recently cut 2024 GDP growth projections from 0.8% to just 0.1%

Why This Matters:

• Germany's export-driven economy is particularly vulnerable to trade barriers

• U.S. tariffs target key German industries like automobiles and machinery

• Comes amid broader EU-U.S. trade tensions

Statement Excerpt:
"The combination of external shocks and structural challenges has created a perfect storm for Germany's economy," the report warned.