Bloomberg: EU Economy Threatened by Trump's Tariff Strategy
A report suggests that US President Donald Trump's decision to implement extensive duties on EU imports may negatively 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.
US President Donald Trump’s initiative to impose extensive tariffs on EU imports could have a considerable negative impact on the bloc’s economic growth, according to Bloomberg.
Trump has intensified his trade measures against the EU, recently stating that the bloc was formed to “screw” the US and pledging 25% tariffs on “cars and all other things.” In this effort, he has already applied a 25% levy on EU steel and aluminum shipments effective March 4.
A comprehensive tariff is “no joke,” wrote Bloomberg columnist Lionel Laurent on Monday, estimating that it could jeopardize 1.5% of the EU’s gross domestic product.
In a worst-case scenario, the levies could result in the loss of 12,000 jobs in the European steel sector and compel automakers to relocate production to the US, as noted by Bloomberg Intelligence analysts.
The report referenced European steel giant ArcelorMittal SA, which is reducing jobs and scaling down operations in response to the EU’s “existential” crisis caused by soaring energy costs and inexpensive Asian imports. The company has cautioned that all its European facilities face potential shutdowns, while its German competitor Thyssenkrupp AG’s steel division reportedly plans to cut 40% of its workforce in the coming years.
The article highlighted that although Trump’s “anti-EU hostility has intensified,” the European economy is currently weaker than during his first term, particularly in its core areas, where France and Germany are experiencing sluggish growth. In contrast, the US remains relatively robust “as the global engine of demand.”
The trade dispute between the US and the EU has intensified since Trump declared his intentions to implement a broad range of import duties to address what he characterizes as a trade imbalance. During a recent cabinet meeting, Trump reaffirmed that his administration intends to impose tariffs on EU imports “very soon.” The EU has indicated that it is ready for extensive retaliation.
These proposed tariffs are anticipated to affect a diverse range of European products, with the automobile industry likely to be among the hardest impacted. European car manufacturers such as Volkswagen and Mercedes-Benz may confront significant challenges in the US market.
Concerns regarding the stability of Germany’s auto sector have emerged, as rising costs are leading to shutdowns at major players, including VW.
In a recent article for the Financial Times, former European Central Bank President Mario Draghi urged the EU to tackle trade barriers among member states, describing such barriers as “far more damaging for growth than any tariffs the US might impose.”
Thomas Evans contributed to this report for TROIB News
US President Donald Trump’s initiative to impose extensive tariffs on EU imports could have a considerable negative impact on the bloc’s economic growth, according to Bloomberg.
Trump has intensified his trade measures against the EU, recently stating that the bloc was formed to “screw” the US and pledging 25% tariffs on “cars and all other things.” In this effort, he has already applied a 25% levy on EU steel and aluminum shipments effective March 4.
A comprehensive tariff is “no joke,” wrote Bloomberg columnist Lionel Laurent on Monday, estimating that it could jeopardize 1.5% of the EU’s gross domestic product.
In a worst-case scenario, the levies could result in the loss of 12,000 jobs in the European steel sector and compel automakers to relocate production to the US, as noted by Bloomberg Intelligence analysts.
The report referenced European steel giant ArcelorMittal SA, which is reducing jobs and scaling down operations in response to the EU’s “existential” crisis caused by soaring energy costs and inexpensive Asian imports. The company has cautioned that all its European facilities face potential shutdowns, while its German competitor Thyssenkrupp AG’s steel division reportedly plans to cut 40% of its workforce in the coming years.
The article highlighted that although Trump’s “anti-EU hostility has intensified,” the European economy is currently weaker than during his first term, particularly in its core areas, where France and Germany are experiencing sluggish growth. In contrast, the US remains relatively robust “as the global engine of demand.”
The trade dispute between the US and the EU has intensified since Trump declared his intentions to implement a broad range of import duties to address what he characterizes as a trade imbalance. During a recent cabinet meeting, Trump reaffirmed that his administration intends to impose tariffs on EU imports “very soon.” The EU has indicated that it is ready for extensive retaliation.
These proposed tariffs are anticipated to affect a diverse range of European products, with the automobile industry likely to be among the hardest impacted. European car manufacturers such as Volkswagen and Mercedes-Benz may confront significant challenges in the US market.
Concerns regarding the stability of Germany’s auto sector have emerged, as rising costs are leading to shutdowns at major players, including VW.
In a recent article for the Financial Times, former European Central Bank President Mario Draghi urged the EU to tackle trade barriers among member states, describing such barriers as “far more damaging for growth than any tariffs the US might impose.”
Thomas Evans contributed to this report for TROIB News
