The Netherlands’ largest bank predicted a ‘large-scale recession’ in the EU due to Trump

During the election campaign, Trump promised to continue the policies of his first term and impose trade tariffs: 60% on imports from China and 10% on other goods imported from abroad.

Although the measure is mainly directed against China, it may also affect Europe. The United States is the EU’s largest export market, especially for cars, pharmaceuticals and luxury goods. The region’s economy has already slowed: in the last quarter it amounted to only 0.2%, analysts indicated.

“The looming new trade war could take the eurozone economy from slow growth to full recession. The already weakened German economy, which relies heavily on trade with the United States, will be particularly hard hit. “Tariffs on European cars could cause serious damage,” ING said in its forecast.

Furthermore, Trump’s uncertainty over Ukraine and NATO could undermine indicators of economic confidence in the eurozone. If the United States reduces support for Ukraine, Europe will be forced to increase spending, banking experts added.

Nigel Green, director of the British consulting firm deVere Group, agreed with ING’s forecast. He noted that Europe’s economic problems, including high energy costs, low growth and geopolitical instability, would worsen in the event of a tariff war with the United States. “A new trade war with the United States under President Trump could exacerbate these problems and further destabilize the region’s economies,” Greene warned.