U.S. tariffs, especially on metals such as steel and aluminum, could have a particular impact on Germany's economic growth this year, Euronews reported.

Germany's economy is likely to stagnate at best in 2025 after contracting for two years. At the same time, the impact of US tariffs could weigh on an already unimpressive performance, leading think tanks have warned.

Five economic institutes said in a regular update that they expect minimal growth for Europe's largest economy of 0.1% this year - less than the 0.8% forecast in September. They forecast growth of 1.3% in 2026.

However, the institutes pointed to uncertainty surrounding the Trump administration's trade policies. According to their report, US tariffs on aluminium, steel and auto imports are likely to reduce Germany's economic growth this year and next by 0.1 percentage points.

The massive tariffs, announced last week by President Donald Trump and then largely shelved, could double that hit on gross domestic product, economists say.

However, they added that "the specific effects are difficult to quantify as tariff rates have never been raised so sharply in the world's current globalised economy".

Germany's incoming new government, which hopes to take office in May after months of political instability in the country, aims to revive the economy. Friedrich Merz, the likely next chancellor, and his future allies presented their coalition agreement on 9 April. | BGNES