Germany’s economy is grinding to a halt — again. Facing a grim outlook, Economic Minister Robert Habeck warned on Wednesday that Europe’s largest economy is staring down a third straight year without growth.
Speaking at a press conference in Berlin, Habeck didn’t pull any punches, pointing the finger squarely at former U.S. President Donald Trump’s hardline trade policies. Germany, he stressed, thrives on open markets and free-flowing trade — a sharp contrast to the tariff-heavy approach still echoing from Washington.
“There’s really one major reason behind this,” Habeck said, shaking his head. “It’s Trump’s trade policy.”
Official forecasts look just as bleak. Germany slashed its 2025 growth prediction from a sluggish 0.3% to a flat zero. And even the most optimistic estimates for 2026 only put growth at a meager 1%.
But that’s not the only storm cloud on the horizon. Habeck also issued a stark warning to Germany’s incoming leadership: keep an eye on China. With Beijing making aggressive moves into industries once dominated by German firms, he said the risk is clear — and it’s massive. “It could wreck our economy,” Habeck cautioned.
As Germany struggles to regain its economic footing, the twin pressures of external trade wars and rising global competition are forcing a harsh reckoning in Berlin.
