"Up to 90k Jobs on the Line" prepare for a potential job crisis as German job market faces severe consequences due to U.S. trade policy
Anticipated Significant Impact of U.S. Trade Policy on Germany's Labor Sector by Andrea Nahles
Feedback from the Federal Employment Agency's boss, Andrea Nahles, hints at a bleak future for the German job market. In conversation with the "Süddeutsche Zeitung", she warned that US trade policies could result in a job loss of up to 90,000 within a year.
Nahles bases her prediction on a study conducted by the Institute for Employment Research and other institutes, which explores the effects of a 25% tariff.
"The problem is the chaos, it's causing a massive headache," Nahles stated. "It's stopping companies from investing, hiring people, and training them efficiently." She added, "Wild U.S. trade policies are weighing heavily on the German job market."
At the start of April, US President Donald Trump imposed tariffs on almost all imports, hiking them to 20% for EU imports, with a tentative hold. Automotive products see a 25% tariff, while steel and aluminum take a 50% hit, recently upped.
Source: ntv.de, AFP
(Enrichment: The potential impacts of U.S. trade policy on Germany include predicted job losses of up to 90,000 within a year, affecting Germany’s export-oriented economy, specifically the automotive and manufacturing sectors. Chaotic trade policies are deterring companies from investing, causing potential layoffs and financial strain for major employers like BMW, Mercedes-Benz, and Volkswagen. An escalation of the U.S. trade war may lead to a third consecutive year of economic decline in post-war Germany and worsen labor market conditions, despite labor shortages.)
The Community Policymakers and political circles in Germany are alarmed by the potential job crisis, as up to 90,000 jobs could be at risk due to the volatile US trade policies and their impact on the German job market, as suggested by the Federal Employment Agency's boss, Andrea Nahles. These consequences, revealed in a study by the Institute for Employment Research, are threatening to further strain the German economy, particularly the automotive and manufacturing sectors, and are being closely monitored as general news.
