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The Trump effect on Europe's economy

The European Central Bank predicts the effect of the tariffs promised by the US President-elect

Dec 3, 2024 13:53 113

The Trump effect on Europe's economy  - 1

The import tariffs expected to be introduced by the administration of the US President-elect Donald Trump, may reduce economic growth in the eurozone countries. This assessment was made by Piero Cipollone, Member of the Board of the European Central Bank (ECB).

„We will see a decline in growth, as well as a reduction in inflation,”, Ag. Reuters. Potential U.S. tariffs could weaken the economy, leading to lower consumption and therefore lower pressure on prices, Cipollone said.

In October, the International Monetary Fund (IMF) lowered its forecast for the growth of the eurozone economy this year and next by 0.1 percentage points and 0.3, respectively.