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

Jin10 data reported on July 15, Angel Talavera from Oxford Economics stated that imposing a 30% tariff on goods imported from the EU to the US could push the Eurozone to the brink of recession. Trump has threatened to raise the tariffs on EU goods from 10% to 30% starting August 1 if an agreement cannot be reached. Talavera indicated that this could be part of 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 approach a prolonged recession. He added, "The risk of tariffs exceeding our baseline assumption of 10% has now greatly increased."