US EditionEU executive cuts euro zone growth forecasts because of US trade war
- The European Union revised its growth outlook for the eurozone in 2025 downward to 0.9 percent from an earlier estimate of 1.3 percent, attributing the reduction to escalating global trade uncertainties.
- This downgrade is a response to global trade disruptions caused by the extensive tariffs imposed by the US administration in April on European steel, aluminium, and automobile imports.
- Valdis Dombrovskis, the EU economy chief, indicated that growth in 2025 is anticipated to proceed at a moderate rate, driven by strong employment conditions and increasing wages, despite ongoing downside risks.
- Although inflation declined to 2.2 percent in April and the 2026 forecast was lowered to 1.7 percent, the EU cautioned that renewed global trade disputes might drive inflation back up, while climate-related events like wildfires and floods present additional risks to economic growth.
- With downside risks persisting, the EU needs to implement strong measures to enhance its competitiveness as it confronts the threat of additional tariffs without a trade agreement with Washington.
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66 Articles
EU Unveils Plan to Reinvigorate World’s Second-Biggest Market
The European Union is seeking to strengthen its common market in the face of rising geopolitical tensions and a growing trade conflict with the US, which is threatening to hit the bloc with wide-ranging tariffs.
By trading more with each other, EU countries can easily erase the damage caused by Trump's trade war and consumer prices can fall. The European Commission will therefore present a new strategy on Wednesday to improve the internal market. The concept plan, obtained by De Telegraaf, shows that Brussels presents a 'terrible top 10' of obstacles that it wants to combat in the coming years. There is good news for Dutch consumers and entrepreneurs.
After the negative growth of the US and Japan on the 1st trim yesterday the EU was going to cut the projections for the euro area.
The European Commission is revising its growth forecasts as a result of US protectionist measures. In its trade war, Trump could be his first loser.
The European Commission today lowered its EU economic growth forecast for this year from 1.5 to 1.1 percent, and the euro area economic growth forecast from 1.3 to 0.9 percent, due to uncertainty over US tariffs. Inflation will continue to ease, however. It will fall below 2 percent next year in both the EU and the euro area.
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