Trump Tariffs Tank Eurozone Growth Hopes

The European economy experienced stronger growth in early 2024 but faced challenges due to US President Donald Trump's trade war. A 0.4% GDP increase in the eurozone was shadowed by Trump's new tariffs, impacting EU exports and leading to a downgraded growth outlook.

In the first quarter of the year, Europe's economy showed promising growth, with the gross domestic product in the 20 eurozone countries rising by 0.4 percent, according to Eurostat's recent data.

However, optimism was quickly dampened when US President Donald Trump initiated a trade war, announcing new tariffs on goods imported from the European Union on April 2.

This move has significantly impacted the European economy's growth projections, as the US, the EU's largest export market, imposes a daunting 20 percent tariff rate, causing a widespread downgrade in economic expectations.

(With inputs from agencies.)