May 28th, 2025
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Confronted with the looming spectre of a potential 50% tariff imposition on European imports by the Trump administration, ostensibly triggered by Washington's grievances over the transatlantic trade imbalance – a deficit the EU contends is illusory when factoring in the digital services sector – Brussels is reportedly exploring a panoply of conciliatory measures, ranging from augmenting liquefied natural gas procurement from the US and bolstering defence expenditure with American contractors to recalibrating the bloc's external automotive tariffs; notwithstanding, deeply entrenched regulatory divergences pertaining to food and agricultural standards, coupled with the complexities inherent in harmonising value-added tax regimes, continue to present formidable impediments to a definitive resolution, with macroeconomic simulations projecting a potentially debilitating contraction of up to 1% in the aggregate eurozone economy and a precipitous decline exceeding 6% in business investment should the punitive tariffs be enacted.
May 28th, 2025
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