US tariffs may dent Europe growth

BUDAPEST:

US President Donald Trump’s proposal to impose 25% tariffs on imports from the European Union is likely to dent growth prospects in Central Europe, compounding existing fiscal challenges, S&P Global Ratings told Reuters.

The European Commission has said it would react “firmly and immediately” against barriers to free trade as US duties on imports from Canada and Mexico come into effect on Tuesday.

S&P Global said that while Central and Eastern Europe’s direct trade exposure to the US was limited, growth prospects were likely to be hit through the German car sector. S&P Global said falling Chinese demand for German cars would likely have a larger effect on Central European growth than US tariffs.