A Standard & Poor's Global Ratings report suggests that the Eurozone economy may be able to absorb the impact of increased US export tariffs. Trump previously warned that he would impose a 10% tariff on imported goods, which would affect European exporters as the US is their most important market. However, according to S&P's estimates, this situation may only cause a 0.2% decline in the Eurozone economy, with Germany being the hardest hit. S&P states that the potential tariff impact on the Eurozone economy seems to be manageable, especially if the euro further appreciates against the US dollar.
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Standard & Poor's: Imposing tariffs on the United States may only cause the euro area economy to fall by 0.2%
A Standard & Poor's Global Ratings report suggests that the Eurozone economy may be able to absorb the impact of increased US export tariffs. Trump previously warned that he would impose a 10% tariff on imported goods, which would affect European exporters as the US is their most important market. However, according to S&P's estimates, this situation may only cause a 0.2% decline in the Eurozone economy, with Germany being the hardest hit. S&P states that the potential tariff impact on the Eurozone economy seems to be manageable, especially if the euro further appreciates against the US dollar.