German Finance Minister Robert Habeck has warned that the tariffs imposed by U.S. President Donald Trump could have severe consequences for the global economy, potentially leading to a recession and widespread financial instability. Speaking on Thursday, Habeck emphasized that the United States’ move risks triggering a downward economic spiral, with damaging repercussions for businesses and consumers worldwide.
While calling for a diplomatic approach, Habeck stressed that Germany and the European Union remain committed to negotiations rather than confrontation. However, he made it clear that if Washington refuses to seek a resolution, the EU is prepared to respond with a “balanced, clear, and decisive” countermeasure.
The European Commission has been working to engage the U.S. administration in dialogue, but the window for negotiations is closing. Habeck also dismissed Trump’s rhetoric surrounding what he has called a “Liberation Day” for American industries, warning that for U.S. consumers, it will instead mark an “Inflation Day” due to the economic strain the tariffs will create.
