Trump fees may hinder Europe’s growth in 2025

The senior analysts in Wall Street said that the customs duties imposed by Trump may hinder the growth of Europe in 2025. Goldman Sachs expects that the GDP growth in the eurozone will reach only 0.7%, which is much lower than the recent European Central expectations, according to What the European Euronews network mentioned.

Sectors under Trump’s threat

Main sectors such as cars and medicines face risks, while the declining euro may not provide the necessary support.
A new wave of uncertainty may actually strike the European economy as US investment banks have raised concerns about potential customs duties by President Donald Trump’s administration.
Also read: Trump meets his promises … customs duties shake global markets
With the decline in growth expectations in the eurozone and corporate profits of pressure, analysts believe that the markets should prepare for the uncertain 2025.
Economists in Goldman Sachs and “GB Morgan” indicated in various reports that the risk of customs tariffs – as well as possible European revenge – may significantly affect the economic expectations of the euro area.

Fears of Trump’s fees

While the European Union was not listed in the first round of the American customs duties that affected Mexico, Canada and China, President Donald Trump suggested that the union, given its great trade surplus with the United States, may be the next.
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Goldman Sachs expected the GDP growth of the eurozone by 0.7% in 2025, which is significantly less than 1% estimates and 1.1% European Central Bank expectations in December.
“The imposition of customs duties by 10% on all American imports from the European Union may lead to 1% erasing 1% of the growth of the euro zone,” said Sven Sixty Sixty Sixty European Economy Expert in Goldman Sachs.
Besides GDP, European companies’ profits may also be pressured.
The stock team in Goldman Sachs expects European stock profits by only 3% in 2025, which is much less than expectations, which amounted to 8%.
The team said: “Customs definitions are not necessarily the task, but rather the lack of commercial certainty that threatens economic growth and investment.”

What are the sectors threatened with Trump fees?

The European Union imports represent about 15% of the total imports of the United States, as pharmaceutical machines, preparations and chemicals are among the most important European exports to the United States, and other major industries, including cars, minerals and technology, are large customs risk.
Goldman Sachs declares that the high margins market sectors, such as health care, tend to be affected less in a commercial uncertainty.
In contrast, car manufacturers and periodic shares are especially at risk.

The strategy of Europe in protecting its economy

According to the economic expert at the GB Morgan Bank, Nora Szintevani, “the motives, goals, timing and customs duties rates are unclear.”
However, the European Commission announced that it would firmly respond to any customs duties imposed by the United States.
If the European Union follows its targeted retaliatory strategy that it adopted in 2018, it is likely to avoid the imposition of customs duties on energy products, but it may impose customs duties that may exceed 50% on goods that affect Trump’s voter base than others.