Bloomberg: EU economy endangered by Trump's tariff strategy
According to a report, US President Donald Trump’s decision to impose extensive tariffs on EU imports could impact the bloc’s GDP. Read Full Article at RT.com.
TroibNews 
The US president has vowed to impose 25% levies on all imports from the bloc.
According to Bloomberg, US President Donald Trump’s intention to impose substantial tariffs on EU imports could have a considerable negative impact on the bloc’s economic development.
Recently, Trump has intensified his trade campaign against the EU, asserting that the bloc was established to “screw” the US and committing to 25% tariffs on “cars and all other things.” As part of this initiative, he has already enacted a 25% levy on EU steel and aluminum shipments that began on March 4.
Bloomberg columnist Lionel Laurent remarked on Monday that a comprehensive tariff is “no joke,” estimating it could jeopardize 1.5% of the EU's gross domestic product.
In the most adverse scenario, these levies could lead to a loss of 12,000 jobs in the European steel sector and compel automakers to relocate production to the US, as suggested by Bloomberg Intelligence analysts.
The report mentioned the European steel giant ArcelorMittal SA, indicating that the company is reducing jobs and operations domestically due to the EU's "existential" crisis from soaring energy costs and inexpensive Asian imports. It has cautioned that potential closures loom over all its European plants. Similar concerns were raised regarding Thyssenkrupp AG’s steel unit, which reportedly plans to cut 40% of its workforce in the upcoming years.
While Trump’s “anti-EU hostility has intensified,” the report pointed out that the European economy is currently more fragile than during his first term—particularly in core nations like France and Germany, which are experiencing slower growth—while the US remains relatively stronger, acting as “the global engine of demand.”
The trade conflict between the US and the EU has heightened since Trump announced plans to impose a variety of import duties to address what he perceives as a trade imbalance. Last week, Trump reinforced his administration's plans to implement tariffs on EU imports “very soon” during a cabinet meeting. In response, the EU stated that it was ready for broad retaliation.
The proposed tariffs are anticipated to affect a diverse range of European products, with the automobile industry likely facing the most significant impact. Major European car manufacturers, including Volkswagen and Mercedes-Benz, could encounter considerable difficulties in the US market.
Concerns regarding the stability of Germany’s auto sector have grown, as rising costs have prompted shutdowns at major companies like VW.
In a recent Financial Times piece, former European Central Bank President Mario Draghi urged the EU to tackle trade barriers among member states, which he deemed “far more damaging for growth than any tariffs the US might impose.”
Lucas Dupont for TROIB News
According to Bloomberg, US President Donald Trump’s intention to impose substantial tariffs on EU imports could have a considerable negative impact on the bloc’s economic development.
Recently, Trump has intensified his trade campaign against the EU, asserting that the bloc was established to “screw” the US and committing to 25% tariffs on “cars and all other things.” As part of this initiative, he has already enacted a 25% levy on EU steel and aluminum shipments that began on March 4.
Bloomberg columnist Lionel Laurent remarked on Monday that a comprehensive tariff is “no joke,” estimating it could jeopardize 1.5% of the EU's gross domestic product.
In the most adverse scenario, these levies could lead to a loss of 12,000 jobs in the European steel sector and compel automakers to relocate production to the US, as suggested by Bloomberg Intelligence analysts.
The report mentioned the European steel giant ArcelorMittal SA, indicating that the company is reducing jobs and operations domestically due to the EU's "existential" crisis from soaring energy costs and inexpensive Asian imports. It has cautioned that potential closures loom over all its European plants. Similar concerns were raised regarding Thyssenkrupp AG’s steel unit, which reportedly plans to cut 40% of its workforce in the upcoming years.
While Trump’s “anti-EU hostility has intensified,” the report pointed out that the European economy is currently more fragile than during his first term—particularly in core nations like France and Germany, which are experiencing slower growth—while the US remains relatively stronger, acting as “the global engine of demand.”
The trade conflict between the US and the EU has heightened since Trump announced plans to impose a variety of import duties to address what he perceives as a trade imbalance. Last week, Trump reinforced his administration's plans to implement tariffs on EU imports “very soon” during a cabinet meeting. In response, the EU stated that it was ready for broad retaliation.
The proposed tariffs are anticipated to affect a diverse range of European products, with the automobile industry likely facing the most significant impact. Major European car manufacturers, including Volkswagen and Mercedes-Benz, could encounter considerable difficulties in the US market.
Concerns regarding the stability of Germany’s auto sector have grown, as rising costs have prompted shutdowns at major companies like VW.
In a recent Financial Times piece, former European Central Bank President Mario Draghi urged the EU to tackle trade barriers among member states, which he deemed “far more damaging for growth than any tariffs the US might impose.”
Lucas Dupont for TROIB News
