The European Union has slashed its 2025 economic growth forecast for the eurozone to 0.9%—down from 1.3%—as global trade tensions sparked by former U.S. President Donald Trump’s tariffs rattle markets. 🌐💥 The EU’s latest report warns of a "weakening global trade outlook" and rising uncertainty, with Germany, the bloc’s powerhouse, now projected to see zero growth next year. 😮
Why the Downgrade?
Trump’s 25% tariffs on steel, aluminum, and auto imports, plus a looming 20% levy on most EU goods, have forced Brussels to brace for impact. While negotiations have paused the hikes until July, a "baseline" 10% tariff remains, squeezing EU exports. 📦💸
Germany’s Struggle & Global Ripples
Germany’s downgrade to 0% growth in 2025—from 0.7% last year—signals deeper cracks in Europe’s economy. EU economy chief Valdis Dombrovskis urged "decisive action" to boost competitiveness amid pressure from U.S. and Chinese firms. 🏭⚡
What’s Next?
The EU is pivoting from climate goals to economic survival mode, aiming to ease business regulations. But with 2026 growth forecasts also trimmed to 1.4%, the bloc faces a high-stakes race against trade headwinds. 🚀🌪️
