Germany must seek new international partners as the global order shifts and long-standing alliances weaken, Economy Minister Katherina Reiche said on Tuesday, pointing to deteriorating relations with the United States that have resulted in painful import tariffs.
“The world has become more uncertain, and alliances that we have trusted and relied on are beginning to crumble,” Reiche told the Handelsblatt Energy Summit.
She said Germany should broaden its economic partnerships, highlighting South America, India, the Middle East, Canada and Australia, as well as several Asian countries including Malaysia, as potential areas for deeper cooperation.
Reiche’s remarks reflect growing uncertainty in Europe over the future role of the United States in global trade following President Donald Trump’s decision to impose tariffs on key allies, including Canada and the European Union.
The economy minister said forging new economic alliances would be crucial to strengthening Germany’s economy, the largest in Europe which is currently relying on debt-funded investments in defence and infrastructure to generate growth.
Germany is expecting only modest expansion over the next two years, Reiche said, estimating gross domestic product growth at between 1% and 1.5%.
“We are talking about 1%, 1.5%,” she said. “This is not sustainable.” According to a person familiar with the matter, the German government is expected on Wednesday to lower its 2026 growth forecast to 1.0% from a previous estimate of 1.3%. GDP growth in 2027 is projected at 1.3%.
