German economy faces tough choices as Trump returns to White House
German industrial output hits lowest point in nearly two decades while facing new trade-related challenges. Former export powerhouse needs quick solutions as international relations shift dramatically
Die Zeitʼs one-word english headline shows Germans reaction to recent political shifts: a simple “F--k“ represents their growing un-ease about whats coming
Donald Trumpʼs win creates problems for everyone but hits Germany extra-hard (as their economy already shows signs of trouble). Industrial numbers dont look good: production dropped 2.5% in Sept‚ with car-making down almost 8% - marking a multi-decade low point
The situation gets more complex due to Trumpʼs long-standing issues with Germany:
* Complaints about military spending
* Anger over Nord Stream 2
* Frustration with trade imbalances
* Dislike of German cars on Fifth Avenue
The first thing I did was I terminated Nord Stream 2. Letʼs get this straight‚ so Putinʼs building the biggest pipeline in the world
German car-makers face a double-hit: their output dropped from 6-million cars about 10 years ago to just 4.2-million last year. Now Chinese EV makers lead in key areas like range and software while VW closes three factories
The trade numbers worry experts - Moritz Schularick from Kiel Institute thinks its the hardest economic moment in Federal Republicʼs history. With possible 10-20% tariffs coming their way Germans might lose around 180-billion euros in next 4 years
Their old ways dont work anymore: Nord Stream lies broken‚ China copies their tech‚ and that huge trade surplus (6-8% of GDP for many years) might become a real problem. Now Germany needs to change its whole economic system - or face a long down-turn
