Germany must look beyond its traditional allies and actively seek new international partners as the global order becomes more unstable, the country’s economy minister said on Tuesday, pointing to strained relations with the United States and the impact of rising tariffs.
Speaking at the Handelsblatt energy summit, Katherina Reiche said long-standing alliances could no longer be taken for granted.
“The world has become more uncertain, and the alliances we have relied on are starting to crumble,” Reiche said. “That does not mean turning away from them, but continuing to cooperate — even when it is difficult — while also seeking out new partners.”
Shift Driven by US Trade Tensions
Reiche’s comments reflect growing concern in Berlin over the future role of the United States following the imposition of import tariffs by President Donald Trump on key allies, including European Union** and Canada.
The tariffs have added pressure to Germany’s export-driven economy and reinforced calls for broader trade diversification.
Reiche said potential partners include countries in South America, India, the Middle East, Canada, Australia, and parts of Asia, including Malaysia.
Economic Growth Remains Fragile
The economy minister warned that expanding economic alliances is critical for Germany’s long-term growth prospects. She said Europe’s largest economy is currently expecting only modest expansion, largely driven by debt-financed spending on defence and infrastructure.
“We are talking about growth of 1% to 1.5%,” Reiche said. “That is not sustainable.”
Lower Growth Forecast Expected
Germany’s government is expected to revise its economic outlook on Wednesday, with growth projections for 2026 likely to be cut to 1.0% from a previous estimate of 1.3%, according to a source familiar with the matter. Growth in 2027 is projected at around 1.3%.
Economists say the weaker outlook underlines the urgency for Germany to diversify trade relationships and reduce reliance on a small number of partners as geopolitical and economic uncertainty increases.