With Trump 2.0 becoming a reality, Europe is poised to descend into a new geopolitical and trade quagmire with its largest trading partners. A Trump victory in the U.S. presidential election could hurt the European economy: The proposed 10 percent U.S. tariffs could affect European exports, such as cars and chemicals, eroding European GDP by up to 1.5 percent, or about 260 billion euros.
There is concern that the comprehensive tariffs proposed by Trump of 10 percent on all U.S. imports will significantly disrupt European growth, exacerbate divergence in monetary policy, and put pressure on key trade-dependent sectors, such as automobiles and chemicals.
