Bundesbank Chief Warns: Germany at Risk of Recession Due to U.S. Tariffs

In an interview with the BBC, Bundesbank President Joachim Nagel stated that while Europe's response to U.S. tariffs was warranted, a trade war would be detrimental to all involved and could potentially lead Germany, the largest economy in the EU, into recession this year. Nagel warned, "We are in a world with tariffs, so we could expect maybe a recession for this year, if the tariffs are really coming." He also expressed hope that the Trump administration comprehends that the costs of a trade war would be most burdensome on the American side.