Could US tariffs push Germany into another recession? Well, that's what Germany's central bank chief is warning.

Live from the UK, this is the Marketplace Morning Report from the BBC World Service. I'm Leanna Byrne. Good morning.

Germany's economy, Europe's biggest, has already shrunk two years in a row, and now new tariffs from the US could make

things even worse. Joachim Nagel, President of the Bundesbank, tells the BBC that President

Trump's 25% tariff on steel imports means Germany could expect another recession this year.

I think we are living in a stagnating economy. The forecast of my institution, the Deutsche

Bundesbank is for this year economic growth by around 0.2%. So this is not good, but this is with our

terrorists. Now we are in a world with terrorists, so we could expect maybe a recession for this year if the terrorists

are really coming. So it is a challenging situation. So the timing for all this is definitely

this is not a good timing. Now, without tariffs, Germany's economy isn't exactly booming,

but it is forecast to edge slightly upward, growing about

0.2%. Nagel strongly opposes tariffs, saying they create only losers and backs the European

Union's plan to retaliate. The European Union had to react because if something is working

against you, you can't accept a policy like this. So I think this

was rational behavior. But now we shouldn't close maybe the doors, so we have to talk to each

other. And I hope that there is the understanding within the Trump administration that the

price that has to be paid is the highest on the

side of the Americans. And if that lesson is learned and understood, I believe, then there is

room to manoeuvre again and stop this. I think this is not a good policy. That was Joachim Nagel,

president of the Bundesbank. Now, let's do the numbers.

European stocks and US futures slip this morning as worries about an escalating global trade war

overshadowed yesterday's rally and softer than expected US inflation data. Germany's

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