U.S. tariffs could thrust Germany into recession, central bank governor says

German central bank President Joachim Nagel warned that U.S. tariffs could push Europe’s largest economy into a recession, as Berlin debates fiscal policy changes. Global tariffs exacerbate Germany’s “stagnating economy,” which has contracted for two consecutive years due to the Covid-19 pandemic and the energy crisis. The EU retaliated against Trump’s steel and aluminum tariffs, impacting Germany’s export-dependent sectors, while the ‘ReArm’ plan could strain the EU’s AAA rating with increased defense expenditures.

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