Multiple financial institutions in Germany and Japan have recently downgraded their economic growth forecasts amid the U.S. tariffs hike.
Germany's economy is projected to grow by 0.1 percent in 2025, according to a joint forecast released on Thursday by the country's leading economic think-tanks, marking a sharp downgrade from the previous forecast of 0.8 percent issued in autumn 2024.
The revision is attributed to mounting headwinds from newly imposed U.S. tariffs and continued domestic policy uncertainty.
The research director of the Rhein-Westphalia Institute (RWI) for Economic Research said that geopolitical tensions and the U.S trade protectionist policies are exacerbating Germany's already strained economic situation.
Many financial institutions have lowered their economic growth forecasts for Japan this year.
Notably, Mizuho Securities revised its projection down by 0.2 percentage points, while the Daiwa Institute of Research was more pessimistic, estimating a downward revision of 0.4 percentage points for Japan's economic growth in 2025.
In particular, Japan's automobile manufacturing industry -- one of the pillars of its economy -- is expected to suffer a significant blow.
Japan's automobile industry accounts for 50 percent of the total output value of the country's manufacturing sector and provides over five million jobs, representing more than 8 percent of the nation's total workforce.
According to an analysis by the Nomura Research Institute, a 25-percent increase in U.S. auto tariffs could lead to at least a 0.2 percent decline in Japan's GDP.
Trump's tariff policy is expected to cause a contraction in domestic production and a reduction in employment opportunities, accelerating the hollowing-out of the economy and potentially plunging Japan into a downturn in a short period of time.
Germany, Japan economic growth forecasts downgraded amid US tariffs hike
The Iranian government is focusing on public concerns and maintaining stable supplies of essential goods amid recent protests, Iranian President Masoud Pezeshkian said in a televised interview on Sunday.
In the city of Karaj, northwest of the capital Tehran, daily life has largely continued as normal. A video filmed by a local resident on Sunday shows food stores open and grocery shelves fully stocked.
"This is the block near my home, and there are some food stores here. Daily life continues here. Last night we did not see many protests in Karaj. Right now the city is very safe. This is a grocery store close to my home. All the food is available; nothing is in shortage. Here are noodles and different types of beans. Here are dairy products, cheese, and yogurt. I also checked other grocery stores and didn't see any shortages. Everything is available," said local resident Ali Reza.
Iranian officials have described recent disturbances as acts orchestrated by the "enemy," including some carried out by well-trained and armed "terrorists." The incidents have caused casualties among security personnel and civilians, as well as property damage.
The Secretary of Iran's Supreme National Security Council Ali Larijani has directed authorities to severely punish the "terrorists."
Meanwhile, Iran's police chief Ahmad-Reza Radan said on Sunday that the police had raised alert levels and arrested several leaders of the troublemakers during the operations on Saturday.
President Pezeshkian noted in the interview that the normal demands of the Iranian people are reasonable and justified, but they must realize that triggering riots and carrying out terrorist acts are the enemy's attempts to undermine the country. He urged the public to remain vigilant.
Also on Sunday, Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that Tehran would regard U.S. and Israeli bases and facilities in the Middle East as "legitimate targets" if Washington takes military action against Iran. His remarks followed media reports saying U.S. President Donald Trump is "seriously considering authorizing a strike" against Iran.
Iranian state media reported that at least 109 members of Iran's security forces have been killed in clashes since the protests began 14 days ago. Meanwhile, human rights groups based outside the country said the number of protesters killed has exceeded 200, though the figure could not be independently verified.
The protests initially erupted over a sharp depreciation of the rial and sweeping subsidy reforms. Iranian authorities have blamed the unrest on foreign-linked agents and sanctions imposed by the United States.
Iranian president says government focusing on ensuring supplies amid protests
