BERLIN (Reuters) - U.S. import tariffs on metals should have a limited effect on a global recovery, but any escalation into a full-blown trade war and related growing uncertainty could cause tangible damage, the German economy ministry said on Thursday.
"The German economic upswing is continuing at the beginning of 2018. The global economic environment is still favorable," the ministry said in its monthly report.
"However, U.S. trade policy is creating a sense of uncertainty," the ministry said.
U.S. import tariffs on steel and aluminum will affect some regions, but the overall implications for the global economy are likely to be manageable, the ministry said.
"But a possible escalation into a trade war and rising uncertainty among market participants could cause tangible damage," the ministry added.
(Reporting by Michael Nienaber; Editing by Madeline Chambers)