Global economic risks are growing fast! Markets are anxious, economists are on edge! Something must be done!
According to Valdis Dombrovskis, the European Commissioner for Economy, US tariffs on the European Union could trigger global economic fragmentation. He warned that in the medium term, this could shrink global GDP by 7.
Dombrovskis sees Washington’s tariffs as unjustified and believes they will harm the global economy. “There is a real risk of global economic fragmentation with the imposition of tariffs,” he emphasized. The International Monetary Fund (IMF) estimates that if fragmentation occurs and trade is limited to certain economic blocs, global GDP could fall by 7%. “This would be the equivalent of erasing the combined GDP of Germany and France from the global economy,” Dombrovskis added.
Earlier, US President Donald Trump announced that the United States would impose 25% tariffs on goods imported from the EU.
