The introduction by the US of a comprehensive import tariff of 25% on the entire range of EU goods could cost the union 1.5% of its gross domestic product (GDP), Bloomberg reported, citing calculations by its analysts.
The EU economy is now in a much weaker position than it was during the first term of US President Donald Trump in 2017-2021. Then he introduced the first tariff restrictions on trade with the EU. The main "locomotives" of the world economy - Germany and France, are experiencing major problems with economic growth.
The previously announced imposition of US tariffs on all steel and aluminum imports also creates major problems for the European foundry industry. As Bloomberg analysts point out, the tariffs could force European manufacturers in the industry to cut 12,000 jobs. A number of industrial giants, such as Germany's Thyssenkrupp AG and Luxembourg's ArcelorMittal SA, are already laying off workers amid the general crisis in the EU, and US import tariffs will only worsen their situation.
Large European manufacturers of industrial goods will not be able to open new factories in the US in the short term to sell to the country's market, as the American side requires. The EU is faced with the question of how the union can respond to Washington's economic policy. One option involves a comprehensive response in the form of not only the introduction of retaliatory tariffs on American goods, but also the adoption of restrictions on the participation of American companies in government procurement in EU countries. However, given the undermined foreign policy unity of the EU, this will be difficult to achieve, Bloomberg points out. The second option is to eliminate internal EU barriers and restrictions that hinder the growth of the union's economy, but this requires the common political will of EU countries.
At the same time, the United States may also suffer significant losses if American tariffs on imports of goods from Canada and Mexico come into force. Bloomberg indicates that we can talk about 1.3% of US GDP and an acceleration of the inflation rate in the country.
Earlier, Trump announced that the decision to introduce tariffs on EU goods has already been made and will soon be announced, that they will reach 25% and will affect not only cars, but also “everything else“. At the same time, Trump expressed the opinion that the EU was created to use the US for its own interests. On February 10, Trump ordered a 25% tariff on all steel and aluminum supplies to the country.