Clemens Fuest, president of the Munich-based Ifo Institute, has warned that the German economy could slide into recession if the US imposes new tariffs. 'If this turns into a new trade war, Germany faces a recession in 2026,' he told Bild newspaper.

US President Donald Trump has threatened to raise tariffs on EU car imports to 25%, accusing the bloc of failing to comply with a trade agreement reached in July 2025. That deal had capped tariffs on most EU imports, including cars, at 15%. The EU denies the accusations and is considering a response.

A new INSA poll shows the far-right Alternative for Germany (AfD) leading with 28% support, ahead of Chancellor Friedrich Merz's conservative CDU/CSU bloc at 24%. The coalition partner SPD remains at 14%, the Greens at 13%, and the Left Party at 11%.

The poll also reveals that 58% of Germans believe the conservative-SPD coalition government will collapse before the next scheduled elections in 2029. Only 24% think it will last, and 75% are dissatisfied with its performance. The coalition took office less than a year ago.

Germany's domestic intelligence agency BfV has classified the AfD as a right-wing extremist organization, citing racist and anti-constitutional elements in its platform. The classification is currently suspended pending an appeal by the party.

Source: www.dw.com