EU Response to Trump’s Tariffs: Between Retaliation and Negotiation

Avinash Arora15 Apr, 2025News

Estimates project that if the US follows up with its 20 percent tariff rate after the current pause, this could result in a 0.3 percent reduction of the EU’s GDP forecast over the next two years and affect US$2 trillion worth of transatlantic trade. Moreover, Trump’s tariffs on Europe’s automobile and metal sectors remain in place along with the watered-down 10 percent rate on all countries.