Global Economic Pressures: Germany Faces Housing Crisis While U.S. Protectionist Policies Reshape Markets

Global markets are undergoing drastic changes this week,
with a sharp decline in home construction in Germany and a strong return by
President Trump through bold economic decisions involving strategic deals and tariffs on smartphones.

Content

Germany
Trump
Smartphones

Germany

Housing Crisis in Germany: Sharp 14% Drop in New Home Construction During 2024
Germany’s residential construction sector witnessed a significant downturn in 2024, with the number of newly built homes falling by 14.4% compared to the previous year, according to data released Friday by the Federal Statistical Office in Wiesbaden.

The office reported that only 251,900 residential units were completed, marking a decrease of 42,500 homes from 2023, which saw the construction of approximately 294,000 units. This represents the largest drop in years and comes amid soaring interest rates and rising construction material costs, prompting many developers to suspend their projects and reducing investor appetite in the real estate sector.

Although the figure remains above the historic low recorded in 2009 (159,000 homes), it is still far below the 2020 peak when 306,400 homes were built.

Germany’s housing market is struggling with a significant supply gap estimated at several hundred thousand units, as rental prices have sharply increased in recent years. The previous government led by Olaf Scholz failed to meet its promise of building 400,000 homes annually—a target that has gone unmet for three consecutive years.

Trump

Trump Approves U.S. Steel–Nippon Steel Merger: Strategic Partnership to Create 70,000 Jobs and Inject $14 Billion into the U.S. Economy
On Friday, former President Donald Trump announced his approval of the merger between U.S.-based “U.S. Steel” and Japan’s “Nippon Steel,” calling it a “strategic partnership” between the two countries. The deal had been suspended for months due to national security concerns.

Trump wrote on his “Truth Social” platform that the planned partnership would help create at least 70,000 jobs and add $14 billion to the U.S. economy. He emphasized that U.S. Steel’s headquarters would remain in Pittsburgh, with the majority of investments to be made within the next 14 months.

Shares of U.S. Steel surged by over 24% following the announcement, reflecting market optimism about the development.

Previously, President Joe Biden had blocked Nippon Steel’s $14.9 billion acquisition of U.S. Steel in January, citing concerns over national security and strategic supply chains. However, Trump reopened the case in April and directed the Committee on Foreign Investment in the U.S. (CFIUS) to conduct a comprehensive review, paving the way for final approval.

Smartphones

Trump Announces 25% Tariff on Smartphones Manufactured Outside the U.S. Starting End of June
On Friday, Donald Trump declared that the United States would begin imposing a 25% tariff on all smartphones sold in the country that are manufactured abroad. He clarified that the decision would apply to all companies, not just Apple.

Speaking to reporters at the White House, Trump stated that the new measure “won’t be limited to Apple—it will include Samsung and every company that manufactures smartphones outside the U.S.,” adding that the tariffs would go into effect by the end of June.

The former president emphasized that making exceptions would be “unfair,”
highlighting the importance of applying the tariffs equally to all companies without discrimination.

Global Economic Pressures: Germany Faces Housing Crisis

Global Economic Pressures: Germany Faces Housing Crisis

Related Topics