German Economy Ministry: Due to declining orders and US trade policy, a noticeable weakening in the industrial cycle is to be expected in the coming months
— FinancialJuice (@financialjuice) April 14, 2025
United States President Donald Trump’s trade policies are raising the chances that the next financial crisis will occur “sooner than expected,” Germany’s incoming Chancellor Friedrich Merz warned.
“The next financial crisis is sure to come. We just don’t know when and why,” Merz told German newspaper Handelsblatt in an interview.
“President Trump’s policies increase the risk that the next financial crisis will come sooner than expected,” he said.
The tariff regime announced by Trump has sent markets reeling in the last 10 days over widespread fears of a looming recession. Trump eventually paused part of the measures and then on Friday exempted smartphones, computers and other electronics from his reciprocal duties.
Merz’s center-right Christian Democratic Union struck a deal with the center-left Social Democratic Party for a coalition government last week, setting their sights on starting their work on May 6 as pressure from Washington is mounting.
https://www.politico.eu/article/donald-trump-policies-financial-crisis-friedrich-merz-tariffs/