"Brace Yourself! 90,000 Jobs on the Line due to US Trade Policies!"
Anticipates Significant Effect of American Trade Policies on German Labour Sector, According to Andrea Nahles
Get ready, folks! The German labor market might be in for a rough ride, according to the head of the Federal Employment Agency, Andrea Nahles. In an exclusive chat with "Süddeutsche Zeitung," she predicted severe consequences of the US's trade policies for the employment scene in Germany.
"We've got a potential time bomb ticking, and it's called US tariffs. We're looking at up to 90,000 jobs vanishing within a year," Nahles warned ominously. A study by the Institute for Employment Research and other institutions examining the impact of a 25 percent tariff backs up her statements.
"The real pain here is the lack of forecast, which does real damage to us," Nahles explained. "It prevents companies from investing, hiring people, and offering training. Uncertainty is like a cancer, eating away at our industries." She went on to slam the US President for his erratic trade policies, which, she believes, are pushing the German labor market towards the brink.
Donald Trump kicked off a series of tariffs in early April, slapping a 10 percent levy on almost all imports, with EU imports currently having a 20 percent tariff only temporarily suspended. While cars face a 25 percent tariff, steel and aluminum are hit with a hefty 50 percent duty.
Sources: ntv.de, AFP
Insights:
This trade and tariff dispute between the US and EU is shaping up to be a nasty game of economic chicken, and Germany—traditionally one of the powerhouses of Europe's economy—is bracing for the impact. The auto sector, with notable players like BMW and Mercedes-Benz, is expected to take a significant blow due to the 25% tariff on cars and parts. Additionally, the metal manufacturing sector, which includes heavyweights like Salzgitter and Volkswagen, is also in the line of fire due to increased tariffs on steel and aluminum. The broader exporting economy, encompassing sectors like pharmaceuticals and machinery, is also feeling the strain of reduced exports and heightened uncertainty. The German economy, which has enjoyed an impressive run post-WWII, is facing the possibility of experiencing three consecutive years of economic decline for the first time ever, should the current tariff situation continue.
"Given the warnings by the head of the Federal Employment Agency, Andrea Nahles, the potential US trade policies could lead to the loss of up to 90,000 jobs in Germany, as indicated by a study by the Institute for Employment Research and other institutions. The unpredictability of these policies not only prevents companies from investing and hiring, but also creates an industry-eroding uncertainty akin to cancer, according to Nahles.
The anticipated impact is particularly significant for sectors like auto, with companies like BMW and Mercedes-Benz, and metal manufacturing, including heavyweights such as Salzgitter and Volkswagen, due to the 25% tariff on cars and parts, as well as increased tariffs on steel and aluminum."
