WARSAW (ANP) – Last week, Trump introduced specific “reciprocal” tariffs for various trading partners, alongside a general 10 percent tariff applicable to all countries. However, last Wednesday he decided to suspend the implementation of these special import tariffs—set at 20 percent for the EU—for a period of ninety days.
Should Trump move forward with imposing high tariffs of 20 percent on all EU goods, along with significantly higher rates for numerous other nations, the European Commission predicts that the EU economy could contract by 0.6 percent, while the US economy might shrink by at least 3.1 percent, and the global economy could see a decline of 7 percent over the next three years, according to Dombrovskis.
If the tariff increase is limited to 10 percent, forecasts suggest the US economy could face a decline of 0.8 to 1.4 percent by 2027, while the EU economy could contract by 0.2 percent and the global economy by 1.2 percent.
Dombrovskis also mentioned that these simulations do not factor in potential additional losses in investor and business confidence in the US economy, which could lead to even more adverse economic effects.
“Europe did not instigate this confrontation and has no desire for it,” Dombrovskis emphasized. “We are open to negotiations for a mutually beneficial resolution while also protecting our economic interests.”
(April 11, 2025)
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