According to ChainCatcher, Angel Talavera from the Oxford Economics Institute said that imposing a 30% tariff on goods imported from the EU to the United States could push the Eurozone to the brink of recession.
Trump threatened that if no trade agreement is reached, he will raise tariffs on EU goods from 10% to 30% starting August 1.
Talavera noted that this might be Trump's negotiation strategy, but according to the institute's calculations, if high tariffs are implemented, the Eurozone's collective growth rate could drop by 0.3 percentage points in the next two years. In this scenario, the Eurozone's economy would stagnate in the coming quarters and approach a sustained recession. He added: "The risk of tariffs exceeding our baseline assumption of 10% has now greatly increased."
