Germany may lose 90,000 jobs due to U.S. tariff policy, labor agency warns

Germany could see up to 90,000 job losses within a year as a result of U.S. trade tariffs, according to Andrea Nahles, head of the Federal Employment Agency.

Citing analysis from the Institute for Employment Research (IAB) and other academic bodies, Nahles highlighted the projected impact of a 25% tariff rate imposed by the United States.

“The problem lies in the lack of predictability, which is causing us significant harm: it discourages companies from investing, hiring workers, and training staff,” she said.

Nahles further stressed that “the unstable trade policy of the U.S. is a burden on the German labor market.”

This warning comes amid ongoing tensions in transatlantic trade relations. German Chancellor Friedrich Merz recently met with U.S. President Donald Trump and later stated that Trump appears genuinely committed to reaching a tariff agreement with the European Union.

However, Merz also indicated that the EU could consider retaliatory actions against U.S. tech firms if trade disputes with the Trump administration continue to escalate. He made this statement in late May during comments on the broader implications of the trade conflict.

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