{"id":12748,"date":"2024-11-07T13:33:37","date_gmt":"2024-11-07T18:33:37","guid":{"rendered":"https:\/\/economicherald.net\/?p=12748"},"modified":"2024-11-07T13:33:40","modified_gmt":"2024-11-07T18:33:40","slug":"trumps-tariffs-goldman-sachs-warns-of-eu-economic-woes","status":"publish","type":"post","link":"https:\/\/economicherald.net\/?p=12748","title":{"rendered":"Trump\u2019s Tariffs: Goldman Sachs Warns of EU Economic Woes"},"content":{"rendered":"\n<p>President-elect Donald Trump\u2019s proposed <strong>protectionist policies<\/strong>, particularly his pledge to impose <strong>steep tariffs<\/strong> on imported goods, are casting a shadow over Europe\u2019s economic outlook. Investment bank <strong>Goldman Sachs<\/strong> has revised down its growth forecasts for the <strong>euro area<\/strong> following Trump&#8217;s re-election, signaling potential turmoil in global trade relations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Predicted Impact on European Growth<\/strong><\/h2>\n\n\n\n<p>Goldman Sachs now projects the collective <strong>gross domestic product (GDP)<\/strong> of the 20 euro-using nations will grow by just <strong>0.8%<\/strong> next year, a decrease from the previous forecast of <strong>1.1%<\/strong>. This shift comes as analysts anticipate heightened <strong>trade policy uncertainty<\/strong> and Trump\u2019s commitment to imposing tariffs that could stoke economic tensions with Europe.<\/p>\n\n\n\n<p>\u201cMuch of the growth drag would come from higher trade policy uncertainty,\u201d analysts noted, emphasizing that the mere <strong>threat of tariffs<\/strong> may weigh heavily on business confidence and investment more than their actual implementation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Germany&#8217;s Economic Vulnerability<\/strong><\/h2>\n\n\n\n<p>Germany, the economic engine of Europe, is seen as particularly exposed due to its reliance on <strong>auto exports<\/strong> \u2014 a primary target in Trump&#8217;s potential tariff strategy. With the <strong>U.S. as Germany\u2019s largest export market<\/strong>, any tariff increases would deliver a significant blow.<\/p>\n\n\n\n<p>Goldman Sachs has revised Germany\u2019s <strong>2025 GDP growth<\/strong> projection to <strong>0.5%<\/strong>, down from <strong>0.9%<\/strong>, reflecting the country&#8217;s exposure to trade disruption. This outlook further compounds Germany\u2019s existing economic struggles, which include industrial challenges and weakening output. <strong>Volkswagen (VW)<\/strong>, Germany\u2019s largest automaker, saw its stock tumble in response to Trump\u2019s victory, though some recovery was observed by Thursday.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">UK and Broader European Impact<\/h2>\n\n\n\n<p>The potential ripple effects extend beyond Germany. Goldman Sachs has also adjusted its <strong>UK growth forecast<\/strong>, lowering it to <strong>1.4%<\/strong> from <strong>1.6%<\/strong> in 2025. Meanwhile, <strong>Berenberg Bank<\/strong> offered a slightly more optimistic revision for the euro area, reducing its GDP growth estimate by <strong>0.1 percentage points<\/strong> to <strong>1%<\/strong>, noting that increased <strong>U.S. domestic demand<\/strong> and a stronger dollar could partially counterbalance the negative impacts of tariffs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Strategic and Geopolitical Uncertainty<\/strong><\/h2>\n\n\n\n<p>Holger Schmieding, <strong>Berenberg\u2019s chief economist<\/strong>, highlighted that Trump\u2019s renewed presidency brings \u201cconsiderable <strong>trade policy risks<\/strong> and geopolitical uncertainty\u201d for European businesses. Schmieding expects that while Trump may begin with \u201c<strong>selective but headline-grabbing tariffs<\/strong>,\u201d he could escalate measures if Europe and <strong>China<\/strong> don\u2019t yield concessions during negotiations.<\/p>\n\n\n\n<p>Trump\u2019s approach challenges the principles of <strong>open trade<\/strong> that have fostered global economic expansion and benefited the <strong>European Union<\/strong>, one of the largest trading blocs. The outlook remains uncertain as European nations brace for potential <strong>economic headwinds<\/strong>, balancing caution with hopes for limited tariff measures and strategic negotiations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>President-elect Donald Trump\u2019s proposed protectionist policies, particularly his pledge to impose steep tariffs on imported goods, are casting a shadow over Europe\u2019s economic outlook. Investment <a href=\"https:\/\/economicherald.net\/?p=12748\" class=\"read-more-link\">[more&#8230;]<\/a><\/p>\n","protected":false},"author":4,"featured_media":12749,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[109],"tags":[2678,2151,2679,1639,358,2677,2675,1235,1157,2680],"class_list":["post-12748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-economy","tag-europe","tag-gdp","tag-germany","tag-growth-forecast","tag-protectionist-policies","tag-tariffs","tag-trade-tensions","tag-trump","tag-volkswagen"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Trump\u2019s Tariffs: Goldman Sachs Warns of EU Economic Woes - Economic Herald<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/economicherald.net\/?p=12748\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump\u2019s Tariffs: Goldman Sachs Warns of EU Economic Woes - Economic Herald\" \/>\n<meta property=\"og:description\" content=\"President-elect Donald Trump\u2019s proposed protectionist policies, particularly his pledge to impose steep tariffs on imported goods, are casting a shadow over Europe\u2019s economic outlook. Investment [more...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/economicherald.net\/?p=12748\" \/>\n<meta property=\"og:site_name\" content=\"Economic Herald\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-07T18:33:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-07T18:33:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/economicherald.net\/wp-content\/uploads\/2024\/11\/shutterstock_2012934344.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"667\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Julia Simons\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=12748#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=12748\"},\"author\":{\"name\":\"Julia Simons\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/#\\\/schema\\\/person\\\/90ddf480592236aac6527336c4911fb8\"},\"headline\":\"Trump\u2019s Tariffs: Goldman Sachs Warns of EU Economic Woes\",\"datePublished\":\"2024-11-07T18:33:37+00:00\",\"dateModified\":\"2024-11-07T18:33:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=12748\"},\"wordCount\":428,\"publisher\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=12748#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/shutterstock_2012934344.jpg\",\"keywords\":[\"economy\",\"Europe\",\"GDP\",\"Germany\",\"Growth Forecast\",\"protectionist policies\",\"tariffs\",\"Trade Tensions\",\"Trump\",\"Volkswagen\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=12748\",\"url\":\"https:\\\/\\\/economicherald.net\\\/?p=12748\",\"name\":\"Trump\u2019s Tariffs: Goldman Sachs Warns of EU Economic Woes - Economic Herald\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=12748#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=12748#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/shutterstock_2012934344.jpg\",\"datePublished\":\"2024-11-07T18:33:37+00:00\",\"dateModified\":\"2024-11-07T18:33:40+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=12748#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/economicherald.net\\\/?p=12748\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=12748#primaryimage\",\"url\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/shutterstock_2012934344.jpg\",\"contentUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/shutterstock_2012934344.jpg\",\"width\":1000,\"height\":667,\"caption\":\"Trump's-Tariffs-Goldman-Sachs-Warns-of-EU-Economic-Woes\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=12748#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/economicherald.net\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Trump\u2019s Tariffs: Goldman Sachs Warns of EU Economic Woes\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/#website\",\"url\":\"https:\\\/\\\/economicherald.net\\\/\",\"name\":\"Economic Herald\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/economicherald.net\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/#organization\",\"name\":\"Economic Herald\",\"url\":\"https:\\\/\\\/economicherald.net\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2023\\\/10\\\/cropped-cropped-economicheraldlogo-1.png\",\"contentUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2023\\\/10\\\/cropped-cropped-economicheraldlogo-1.png\",\"width\":850,\"height\":760,\"caption\":\"Economic Herald\"},\"image\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/#\\\/schema\\\/person\\\/90ddf480592236aac6527336c4911fb8\",\"name\":\"Julia Simons\",\"url\":\"https:\\\/\\\/economicherald.net\\\/?author=4\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Trump\u2019s Tariffs: Goldman Sachs Warns of EU Economic Woes - Economic Herald","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/economicherald.net\/?p=12748","og_locale":"en_US","og_type":"article","og_title":"Trump\u2019s Tariffs: Goldman Sachs Warns of EU Economic Woes - Economic Herald","og_description":"President-elect Donald Trump\u2019s proposed protectionist policies, particularly his pledge to impose steep tariffs on imported goods, are casting a shadow over Europe\u2019s economic outlook. Investment [more...]","og_url":"https:\/\/economicherald.net\/?p=12748","og_site_name":"Economic Herald","article_published_time":"2024-11-07T18:33:37+00:00","article_modified_time":"2024-11-07T18:33:40+00:00","og_image":[{"width":1000,"height":667,"url":"https:\/\/economicherald.net\/wp-content\/uploads\/2024\/11\/shutterstock_2012934344.jpg","type":"image\/jpeg"}],"author":"Julia Simons","twitter_card":"summary_large_image","twitter_misc":{"Written by":false,"Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/economicherald.net\/?p=12748#article","isPartOf":{"@id":"https:\/\/economicherald.net\/?p=12748"},"author":{"name":"Julia Simons","@id":"https:\/\/economicherald.net\/#\/schema\/person\/90ddf480592236aac6527336c4911fb8"},"headline":"Trump\u2019s Tariffs: Goldman Sachs Warns of EU Economic Woes","datePublished":"2024-11-07T18:33:37+00:00","dateModified":"2024-11-07T18:33:40+00:00","mainEntityOfPage":{"@id":"https:\/\/economicherald.net\/?p=12748"},"wordCount":428,"publisher":{"@id":"https:\/\/economicherald.net\/#organization"},"image":{"@id":"https:\/\/economicherald.net\/?p=12748#primaryimage"},"thumbnailUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2024\/11\/shutterstock_2012934344.jpg","keywords":["economy","Europe","GDP","Germany","Growth Forecast","protectionist policies","tariffs","Trade Tensions","Trump","Volkswagen"],"articleSection":["Investing"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/economicherald.net\/?p=12748","url":"https:\/\/economicherald.net\/?p=12748","name":"Trump\u2019s Tariffs: Goldman Sachs Warns of EU Economic Woes - Economic Herald","isPartOf":{"@id":"https:\/\/economicherald.net\/#website"},"primaryImageOfPage":{"@id":"https:\/\/economicherald.net\/?p=12748#primaryimage"},"image":{"@id":"https:\/\/economicherald.net\/?p=12748#primaryimage"},"thumbnailUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2024\/11\/shutterstock_2012934344.jpg","datePublished":"2024-11-07T18:33:37+00:00","dateModified":"2024-11-07T18:33:40+00:00","breadcrumb":{"@id":"https:\/\/economicherald.net\/?p=12748#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/economicherald.net\/?p=12748"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/economicherald.net\/?p=12748#primaryimage","url":"https:\/\/economicherald.net\/wp-content\/uploads\/2024\/11\/shutterstock_2012934344.jpg","contentUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2024\/11\/shutterstock_2012934344.jpg","width":1000,"height":667,"caption":"Trump's-Tariffs-Goldman-Sachs-Warns-of-EU-Economic-Woes"},{"@type":"BreadcrumbList","@id":"https:\/\/economicherald.net\/?p=12748#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/economicherald.net\/"},{"@type":"ListItem","position":2,"name":"Trump\u2019s Tariffs: Goldman Sachs Warns of EU Economic Woes"}]},{"@type":"WebSite","@id":"https:\/\/economicherald.net\/#website","url":"https:\/\/economicherald.net\/","name":"Economic Herald","description":"","publisher":{"@id":"https:\/\/economicherald.net\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/economicherald.net\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/economicherald.net\/#organization","name":"Economic Herald","url":"https:\/\/economicherald.net\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/economicherald.net\/#\/schema\/logo\/image\/","url":"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/10\/cropped-cropped-economicheraldlogo-1.png","contentUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/10\/cropped-cropped-economicheraldlogo-1.png","width":850,"height":760,"caption":"Economic Herald"},"image":{"@id":"https:\/\/economicherald.net\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/economicherald.net\/#\/schema\/person\/90ddf480592236aac6527336c4911fb8","name":"Julia Simons","url":"https:\/\/economicherald.net\/?author=4"}]}},"_links":{"self":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/posts\/12748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12748"}],"version-history":[{"count":1,"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/posts\/12748\/revisions"}],"predecessor-version":[{"id":12750,"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/posts\/12748\/revisions\/12750"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/media\/12749"}],"wp:attachment":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}