Express
Institutions: Key Period Approaching for EU-US Trade Negotiations, Risk of Failure or Further Delay
Summary: According to reports, French Foreign Trade Bank stated that if by August 1, the EU and the US fail to reach an agreement, the EU will retaliate with the first round of countermeasures, with the European Commission also preparing a second set of measures. Previous macroeconomic forecasts for the eurozone estimated that in a 'severe ...
According to reports, French Foreign Trade Bank stated that if by August 1, the EU and the US fail to reach an agreement, the EU will retaliate with the first round of countermeasures, with the European Commission also preparing a second set of measures. Previous macroeconomic forecasts for the eurozone estimated that in a 'severe scenario,' where the US imposes a 20% tariff on all goods and faces equivalent retaliation from the EU, the eurozone GDP growth rate would be 0.4 percentage points lower in 2025 and 2026 compared to the baseline scenario. If the US were to increase tariffs on EU goods to 30% and face equivalent retaliation, the loss to the eurozone GDP would be even more significant, with an estimated decrease of around 0.5 percentage points in 2025 and 0.6 percentage points in 2026 compared to the baseline scenario. However, French Foreign Trade Bank still believes that although unlikely, there is still a chance for successful negotiations before August 1. Otherwise, under pressure from Europe, especially in the market and from US companies, the 'final deadline' may be postponed once again.
Tags:
Link: Institutions: Key Period Approaching for EU-US Trade Negotiations, Risk of Failure or Further Delay [Copy]
