Trump tariffs lead to 90,000 job losses in Germany, warns Nahles!

Trump tariffs lead to 90,000 job losses in Germany, warns Nahles!

Andrea Nahles, CEO of the Federal Employment Agency, expresses concern about the potentially far-reaching consequences of US tariff policy on the German labor market. In a recent interview with the Süddeutsche Zeitung, she says that Germany is facing a loss of up to 90,000 jobs due to Donald Trump's recently imposed tariffs. This estimate is based on a study by the Institute for Labor Market and Occupational Research, which analyzes the effects of a 25 percent tariff.

At the beginning of April, Trump introduced tariffs of ten percent on almost all imports, and a possible increase to 20 percent for imports from the EU is currently only suspended. Nahles is particularly critical of the tariff rates on cars, which are at 25 percent, as well as on steel and aluminum, which have now reached 50 percent.

Regional effects

The effects are expected to be particularly noticeable in industry, especially in the automotive sector and suppliers. Nahles names specific federal states in which the negative effects are particularly concentrated: Bremen, Baden-Württemberg, Saarland and North Rhine-Westphalia. These regions could be particularly affected by job losses.

The Federal Statistical Office has already noted a decline in German exports due to the American trade strategy. Nahles also emphasizes that the frequently changing tariff rates make it significantly more difficult for companies to plan. This creates uncertainty that inhibits productivity.

Positive signal and measures from the federal government

Despite the difficult situation, there are also positive signs: last month there were more job registrations than layoff announcements, and the workforce barometer shows an increase. The new federal government has also promised tax relief, lower electricity prices and investment incentives. However, the positive effects of these measures will only be visible after 2026.

Another key point is the need to open up new markets and conclude trade deals quickly. Nahles also emphasizes the importance of digitalization and promoting innovation for the labor market. In addition, labor market hubs are used to avoid unemployment by connecting those who have been laid off with companies that are looking for them.

In addition, it will be discussed how artificial intelligence (AI) can be used as an opportunity to counteract the shortage of skilled workers, even if there are concerns about possible job losses. AI is used, for example, in the automated evaluation of study certificates and job offers.

Another topic that is polarizing is citizen's money in Germany. Last year, 23,000 total refusers were counted, which underlines the explosiveness of the issue. Given the uncertainties and challenges, it is clear that the labor market is responding to many external influences that require a quick solution.

In summary, the current situation shows that the Trump administration's tariffs and their impact on the German economy represent a complex problem that poses major challenges for both companies and employees. The next few months will be crucial for the stability of the labor market.

For more information read the reports from Deutschlandfunk and South German newspaper.