Bloomberg: Trump’s trade tensions will cost Europe billions and spark job losses

US President Donald Trump’s decision to impose 25% tariffs on European Union imports is projected to cost the EU 1.5% of its GDP.

According to experts at Bloomberg, the sweeping trade measure, part of Trump’s ongoing push to reshape global trade dynamics, is expected to have significant repercussions on Europe’s economy, per Caliber.Az.

As the tariffs come into play, European companies are likely to be forced to relocate key manufacturing operations to the US to avoid the steep duties. ArcelorMittal, a major steel producer, has already begun shifting production across the Atlantic. Meanwhile, German industrial giant ThyssenKrupp AG may face significant workforce reductions, with the steel sector alone bracing for the loss of up to 12,000 jobs.

“The European economy is weaker than it was during Trump’s first term, especially in its core, with France and Germany lagging behind in growth, and the US comparatively stronger as a global demand engine. Whether this is a negotiating tactic or a genuine strategy, a 25% tariff is no small matter,” Bloomberg analysts noted.

The tariff expansion is part of a broader pattern. Trump’s administration had already imposed similar measures on Mexico, Canada, and China. All goods from Canada are now subject to a 25% duty, with a few exceptions, such as energy imports, which are taxed at a lower 10%. Mexico’s goods are also hit by the same 25% tariff, and China’s exports have been subjected to escalating duties — initially at 10% and then rising to 20%.

The impact of these duties is likely to ripple back to the US market, where Moody’s analysts warn that prices for common goods could surge. In particular, products such as cars and electronics will feel the sting. Apple gadgets, for instance, could see their prices rise by 6% in the US. On the other hand, the cost of shoes from China will only increase by 4%, reflecting a less significant effect on certain products.

The economic consequences of Trump’s trade policies are already being felt globally, but Europe, in particular, seems poised to bear the brunt. With weakened economic growth in France and Germany and ongoing trade disputes, these duties could complicate the EU’s recovery plans and further strain transatlantic relations.