Trump trade tremors dampen confidence in German economy

The Associated Press

Published Jul 09, 2018 • Last updated Jul 10, 2018 • 1 minute read

People gather along the river Main as the sun sets in Frankfurt, Germany, Saturday, July 7, 2018. Photo by Michael Probst /AP

FRANKFURT — A survey of investor confidence in the German economy has fallen to its lowest level since August 2012 on fears of an international trade war.

The ZEW index fell to minus 24.7 points in July, from minus 16.1 points in June.

The ZEW institute’s head, Achim Wambach, said Tuesday that fears about a trade war with the United States outweighed positive news about employment and industrial production.

U.S. President Donald Trump has imposed tariffs on steel and aluminum imports, including from the European Union, and on a range of Chinese goods. China and the EU retaliated with new tariffs, or import taxes, of their own. Germany’s economy is heavily dependent on global trade, with exports 47 per cent of gross domestic product.

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