Commerce tensions with the USA are hurting financial progress in Europe.
The European Union has lower its forecast for financial growth in 2018 to 2.1%, down from a prediction of two.three% in Could.
Pierre Moscovici, the bloc’s financial system commissioner, mentioned the downward revision “displays the affect on confidence of commerce tensions and coverage uncertainty.”
“An additional escalation of protectionist measures is a transparent draw back danger,” he warned. “Commerce wars produce no winners, solely casualties.”
EU progress reached 2.four% in 2017, the quickest growth in a decade.
The USA and European Union have one of many greatest buying and selling relationships on the earth, price over $1.1 trillion a 12 months. However the prospect of a world commerce conflict has damage enterprise confidence.
President Donald Trump has put tariffs on billions price of imported metal and aluminum. That has sparked retaliatory motion from the European Union and different main US buying and selling companions, together with Canada and Mexico.
The following entrance within the commerce battle might be vehicles. Trump has threatened to impose tariffs of 20% on European auto exports to the USA.
Moscovici additionally warned that increased vitality prices — pushed up by rising oil costs — are anticipated to dampen progress in Europe.
CNNMoney (London) First printed July 12, 2018: eight:02 AM ET