US tariffs have become the largest headache in Europe while the odds of a brew brewing staff promise to harm the economy of the region.

More than Europe’s goods such as wine, cheese, and cars are more expensive in America, the result of trade tensions also does not directly affect European consumers.

For the USA, it can prevent the need for the eurozone while referred to by the bloc if necessary to proceed with the cutting of interest later in the month. Regional growth remains positive but slowly by the end of 2024, with inflation that has begun to approach 2% benchmark to Europe central bank. With this, reasons such as consumer trust also began to find strong land.

But Greece’s Greek governor taught tariffs that could shake most of such development. This can be, in fact, driving prices give up and cause a “negative trembling of need.”

“A bad effect of growth can lead to activity that is weaker than expected, bring inflation below our targets,” Yannis stournaras told THE Periodic Period.

While the apparent effect of tariffs is to make things in Europe more expensive for Americans, cheap financial items because cheap financial items are because cheap financial functions because cheap financial functions which financial functions for cheap items in China because cheap financial functions because cheap financial functions for cheap financial matters because the Chinese market is not very impressive.

In the past year, the EU imposes anti-dumping charges against ChinaElectric electrics vehicles on a journey to control cheap Chinese-made Chinese made from flooding European markets. China responds with European pig tariffs while Bloc continues to investigate other industries for similar acts.

Stopnaras echoed the EU Commission Pressign Uu sentiment by Der Leyen following the tariff notice. In a television interviewOn Thursday, he said The EU has “look closely what the indirect effects of these tariffs can be because we cannot absorb the entire world overcapacitity, nor do we accept the passage of our market.”

Unlimited uncertainty

Trump’s tariffs vary in the country (based on a simpler formula), with UK subjected to 10%, Switzerland facing 31%, and China facing further 34% over previous levi. European Union, in size, faced with 20% tariff in US imports. This policy shift marks a seminal moment of Trump’s presidency and the US trade relationship with the majority of the world.

“Such a long tariff is too much fully absorbed by consumers or producers. The hit of the penny can be more likely,” Andrew Kenningham, chief economist in the capital, wrote a short week.

While the economies come to the best course of action, the uncertainty they face can only start what comes forward.

“Some people have a sight that ‘Freedom Day’ can be the day of strong uncertainty, but I’m not sure it’s the case,” ECB Polisicalmaker Schnabel Reuterly told.

The EU says it works in countermeassures that follow Trump’s Tariff Liniff if Diplomatic efforts fail. A possible route is to go after American tech giants responsible for Europe’s € 109 billion Lack of trading services with US

Some are not sure the best way. For example, the Prime Minister of Belgium Bart Deray has a bashed tariff “malignant protectionist” and suggested against the inquiry similar.

But if the Bloc is chasing the road, trading war growth can be difficult to intensify the largest companies to kill the lake. The EU has previously floated the idea of ​​a digital digital service tax but no unity of about 27 members.

Euro Stoxx 50, the Blue-chip stock index contains 50 stocks from eight Eurozone countries, dropped by 11.5% in the last five days.

ECB is set to announce the next interest rate decision in April. 17.

This story originally shown Fortune.com

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