Institutional Analysis: Trump's 30% Tariff Could Bring the Eurozone to the Brink of Recession

ChainCatcher news, Angel Talavera from the Oxford Economic Institute said that imposing a 30% tariff on goods imported from the EU to the US could push the Eurozone to the brink of recession.

Trump threatened that if the two sides cannot reach a trade agreement, he would raise the tariffs on EU goods from 10% to 30% starting August 1.

Talavera stated that this could be Trump's negotiation strategy, but according to the agency's calculations, if high tariffs are implemented, the collective growth rate of the Eurozone could decline by 0.3 percentage points over the next two years. In this scenario, the Eurozone economy would stagnate in the coming quarters and be close to a prolonged recession. He added, "The risk of tariffs exceeding our baseline assumption of 10% has now significantly increased."