World trade Ifo President warns of recession due to US tariffs
The President of the Ifo Institute, Clemens Fuest, warns of considerable risks for the German economy in view of the threat of new US tariffs. The economist fears serious consequences should the EU impose tariffs on US products.
03.05.2026, 00:24
SDA
Fuest told the Bild newspaper: "If this turns into a new trade war, Germany could face a recession in 2026." US President Donald Trump had announced that he would increase tariffs on cars and trucks from the European Union from 15 to 25 percent. The new rates are to apply from next week. Fuest emphasized that the planned tariff increases would hit the German automotive industry in an already difficult situation.
Jens Südekum, advisor at the Federal Ministry of Finance, advised to wait and see, according to the report. First, it should be checked whether the announced US tariffs would actually be imposed. In this case, he spoke out in favor of "appropriate countermeasures" by the EU.
