Trump’s new tariffs will further impact Europe’s economy next year
BusinessEurope warns that the recently announced tariffs by former President Donald Trump could significantly worsen economic challenges for European businesses in 2026, with effects expected to intensify beyond initial stockpiling strategies.
New tariffs proposed by former U.S. President Donald Trump are raising concerns across Europe about their potential impact on economic growth. According to a study by BusinessEurope, while European companies may limit the economic downturn in 2025 by stockpiling products in advance, the negative effects are expected to be much stronger in 2026. The study estimates that these new trade tensions could initially reduce the gross domestic product of the eurozone, the European Union, and other European countries by about 0.03 points in 2025.
However, the same projections show that by 2026, the GDP impact could jump to between 0.5 and 0.6 points, with the eurozone taking the hardest hit. The research, conducted with input from 36 national business federations, highlights significant concerns among companies about tariffs and ongoing trade uncertainty. The European Central Bank also notes that these measures could reduce eurozone growth by about 0.7 points between 2025 and 2027.
Although a recent agreement between the U.S. and the EU at the end of July has eased some political uncertainties, businesses remain worried about the lack of predictability surrounding future American tariffs and the delayed economic fallout. Experts emphasize that, in the medium term, this could pose a significant obstacle to growth in the European economy.
