Berlin: German Chancellor-in-waiting Friedrich Merz has issued a warning regarding the repercussions of the tariffs announced by US President Donald Trump, highlighting their significant negative impact on the German stock market. This development has overshadowed the urgent need to cut taxes and deregulate the economy.
According to Yemen News Agency, Merz stated in a statement on Monday that the current situation in international stock and bond markets is dramatic, posing a threat to worsen further. He emphasized that restoring Germany's competitiveness is more urgent than ever and must be a priority in coalition negotiations.
Germany, along with other European Union countries, is facing 25% tariffs on steel, aluminum, and automobile imports. Additionally, there are 20% "reciprocal" tariffs set to take effect on Wednesday on virtually all other goods.
These tariffs are exacerbating Germany's economic crisis and are a significant hurdle for the incoming government as it attempts to pull Europe's largest economy out of a two-year recession.
On Monday, Germany's benchmark index was among the hardest-hit markets in the eurozone, opening down about 10% before recovering some of those losses.