Kapital Macro: Trump's tariffs pose little threat to the eurozone

19 Nov. News: According to a report by Jack Allen-Reynolds, a macroeconomist at Capital Economics, the euro area is unlikely to be affected by the US’s increased import tariffs. Allen-Reynolds said that although the form of the tariff increase threatened by US President-elect Trump has not yet been determined, a 10% across-the-board tariff seems likely. The US demand for goods from the euro area, which consists of 20 member countries, accounts for only a small proportion of the region’s overall economic activity. Allen-Reynolds said that in any case, the appreciation of the US dollar will outweigh the impact of the tariffs. He said, ‘The impact of US tariffs on euro area GDP will be relatively negligible.’