European Leaders React to Trump's Election Victory

Following Donald Trump's election victory, European leaders are expressing deep concerns about potential economic fallout, particularly due to Trump's proposed 10% tariffs on European imports. Analysts from Goldman Sachs have downgraded economic growth forecasts for the Eurozone, predicting a 0.5% reduction in real GDP and emphasizing that the uncertainty surrounding trade policies could have a more significant impact than the tariffs themselves. ABN Amro analysts also highlight that a universal tariff could notably reduce Eurozone exports, potentially leading to a 1.5 percentage point decrease in growth over the coming years. As tensions mount, European diplomats are convening to strategize their response to Trump's administration. The potential for a renewed trade war poses a serious threat to key industries, especially in Germany, which relies heavily on exports to the U.S. Overall, the outlook for Europe is grim, with fears that economic growth could be pushed into recession as a result of Trump's policies.