German think tank: US tariff measures will weaken German economic growth momentum.

The German Institute for Economic Policy Research released a report on the 16th, stating that if the US government proceeds with its plan to impose a 30% tariff on EU goods starting from August 1, it will put significant pressure on the German economy. The report indicates that if the US tariffs are implemented, it will essentially inhibit Germany's economic growth in 2025, and the growth rate in 2026 will also be limited to around 1.2%. Previously, the institute predicted that the German economy would grow by 0.2% this year and 1.5% next year. The report suggests that while the German economy will be impacted, the economic losses for the US may be more severe. The report predicts that domestic consumer prices in the US will rise due to tariff increases, leading to a suppression of consumer spending. Additionally, under inflation pressure, US monetary policy may continue to tighten, further hindering economic growth. The report also points out that the US has long been one of Germany's most important export markets, accounting for nearly 10% of Germany's total exports by 2024. The expected decline in US demand is likely to further inhibit German exports and weaken the momentum of economic growth in Germany. Given the increasing external uncertainties, the German Institute for Economic Policy Research calls on the German government to accelerate the implementation of fiscal stimulus plans to stabilize the economic fundamentals, and also recommends that the German government collaborate with the EU Commission to study providing support to key industries that are most affected by the tariffs.