If you go and scan through German business news this morning, via N-TV....there's a short news bit coming from the Institute for Macroeconomics and Business Cycle Research (IMK).
IMK is basically predicting that if the tariff 'war' proceeds on....the cost to Germany over the next year is 20-billion Euro. A fair sum, one must admit.
The slant to this? IMK says that there would be some type of recession or 'crash' of the market in this type of scenario. The German economy would have to rely upon the internal market of Germany or that of the EU for make-up situation and that won't be enough to cover the shortfall. In the end, the 'big' market of the US....matters.
Somewhere on a white-board at the Bundestag, there's some numbers written down, and the leadership of the Merkel coalition knows the direction of the economy if this tariff situation isn't settled. The problem here is that they really aren't in control of the trade business anymore....they gave that 'duty' over to the EU. Getting this resolved isn't going to be a pleasant task.
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