Trump is back and Europe’s economy braces for impact! 💥
With Trump returning to the White House after defeating Kamala Harris, European leaders are feeling the pressure like never before. His “America First” approach is expected to hit Europe hard, with tariffs and tensions looming on the horizon. Here’s what it means for markets:
🇪🇺 The EU’s economic nightmare?
Europe’s biggest manufacturers, especially German carmakers, are on edge as Trump eyes a new 10% tariff on European goods. Analysts at ING warn that this could push the EU from sluggish growth into full-blown recession territory. A blow to one of the world’s largest trading relationships could mean major volatility for both EU and US markets. 🚗📉
💣 Trade wars and tough choices
With $1.29 trillion in annual trade, the stakes are high. European leaders are scrambling, meeting in Budapest to devise strategies to protect the EU from looming tariffs. But retaliation could lead to an all-out trade war, intensifying market gyrations and impacting global portfolios.
🛡️ Security at stake
Trump’s stance on cutting military aid to Ukraine has put NATO on high alert. As American support weakens, Europe may have to contend with a more aggressive Russia without U.S. support. European defense and security actions could see sharp moves as leaders work on a stronger, more united EU defense strategy.
