Why is Germany’s economy still shrinking? | DW News

Uncertainty about US tariffs is weighing heavily on Europe's biggest economy.

Germany's output shrank by 0.1 percent in the second quarter of the year, adding to pressure on Chancellor Friedrich Merz's government to turn the economy around. And there are fears that a new trade deal struck between the US and the EU is too favorable to America. Mercedes-Benz has reported a tariff hit of hundreds of millions of euros, although it insists the deal is good news overall.

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Post from DW News on July 30, 2025

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