With numbers .. the European economy stands up to American customs duties

Economic activity has been better than expected at the beginning of the year in front of the surprise statements on customs duties, but the impact of commercial tensions would keep it if this year recesses.
The Eurostat Office announced on Wednesday that the GDP of the eurozone increased by 0.4% in the first quarter compared to the previous three months.
Analysts expected Bloomberg questions that the growth rate would be 0.2% from January to March to the twentieth states of the euro area after +0.2% in the last quarter of 2024.

0.3% growth after 0.4%

As for the overall European Union, growth reached 0.3% after 0.4% from October to December, according to the European Statistics Office.
This strong performance appears to be linked to pre -purchases from the United States before the customs duties entered into March and April, but for the whole year the expectations remain bad.

The European Union is negotiating with the American administration to cancel additional fees, currently reaching 25% on cars, aluminum, steel and 10% on all other products.
The old continent has witnessed a state of recession two years ago as a result of the high cost of energy resources in the wake of the Russian invasion of Ukraine, and the expected recovery this year will be very limited.

The repercussions of trade tensions

On April 22, the International Monetary Fund reduced its forecast for growth in the euro area by 0.2 points to 0.8% in 2025 after 0.4% in 2024, expecting the repercussions of trade tensions.
“The general economy has started on a stronger basis than expected, yet we expect a sharp slowdown in growth over the next six months, since the American fees imposed in April will reflect negatively on the activity,” said Franzeska Palmas of the Capital Economics Foundation.