Germany’s Vulnerability in the Geoeconomic 'Zeitenwende'

Sascha Lohmann on the impact of tariffs and sanctions on the German economy.Since the end of the Second World War, the world economy has operated on a set of shared assumptions: trade is mutually beneficial, interdependence engenders stability, and politics and economics are best kept separate. Germany built one of the strongest economies in the world on the basis of these assumptions. But they may no longer hold true.In 2020, the COVID-19 pandemic shut down global supply chains and revealed how dependent advanced economies had become on goods produced thousands of miles away. In 2022, the Russian invasion of Ukraine forced Germany to wean itself off its dependence on cheap Russian gas, sending energy prices soaring. In 2025, the Trump administration turned tariffs into a political weapon, threatening Germany's export machine. And in February of this year, the United States and Israel attacked Iran, triggering the closure of the Strait of Hormuz, leading to yet another crisis energy markets. Four crises in just six years have called into question Germany’s recipe for prosperity. This episode explores the state of Germany’s economy in the geoeconomic zeitenwende, which has seen sanctions dent German export ambitions. Sascha Lohmann is a Senior Associate at the German Institute for International and Security Affairs. He is an expert on U.S. foreign and national security policy, transatlantic relations, and the intersection of political economy and national security.The Sanctions Age is hosted by Esfandyar Batmanghelidj and Josefine Petrick.To receive an email when new episodes are released, access episode transcripts, and read the hosts reflections on each episode, sign-up for the The Sanctions Age newsletter on Substack: https://www.thesanctionsage.com/