Europe’s economy is holding up better than expected in the face of U.S. President Donald Trump’s new tariffs - in part because the European Union didn’t retaliate with self-defeating tariffs of its own, the head of the European Central Bank said Tuesday.

FRANKFURT, Germany (AP) — Europe’s economy is holding up better than expected in the face of U.S. President Donald Trump’s new tariffs - in part because the European Union didn’t retaliate with self-defeating tariffs of its own, the head of the European Central Bank said Tuesday.

Christine Lagarde said the impact of Trump’s trade war on growth and inflation in the 20 countries that use the euro currency had also been softened by a stronger euro and by conclusion of a trade deal with Trump. The deal capped tariffs at 15% and took away uncertainty that threatened to delay or disrupt business investment.

  • wewbull@feddit.ukEnglish
    20·
    4 days ago

    …because the US has no option to go elsewhere to avoid the tariffs. If they were buying something from Europe they will still buy it from Europe. It’ll just be more expensive. The alternative is go somewhere else with an even higher tariff on it or make it themselves.

    😂😂😂 Sorry. I couldn’t keep a straight face during that last bit.

    • WanderingThoughts@europe.pubEnglish
      3·
      4 days ago

      or make it themselves

      Kicking out foreign engineers and builders didn’t help to build up production. Making the whole economy too unstable for investment in production makes it worse. Tariffs making the machines and materials needed more expensive is just the icing on the cake.

  • Aeao@lemmy.worldEnglish
    81·
    4 days ago

    Good news everyone! The rabid Wolverine I stuffed in my pants isn’t biting my balls as much as you might expect!