Since U.S. President announced a new 20% tariff on all goods imported from
Since U.S. President announced a new 20% tariff on all goods imported from the European Union, in addition to the existing 25% tariff on automobiles, economists are all speculating on what the potential impact of what has come to be known as “Trump tariffs” could be on the Eurozone and Greece.
Recently, the Bank of Greece Governor Yannis Stournaras told the General Assembly of the Hellenic Association of Management Consulting Firms (SESMA) that the effects of Trmp Tariffs “would be negative for all economies involved, including the U.S.” A claim that recent data also supports.
“Trade protectionism,” he stressed, “tends to provoke chain reactions, with affected countries responding with retaliatory measures. This can escalate the crisis and slow global trade, with serious consequences for economic activity and growth.”
He explained that “the production, processing, and distribution of goods occurs through global value chains, which have increased interdependence among national economies.” As a result, imposing tariffs on imports from one country will also affect others participating in these value chains — even if no direct countermeasures are taken.
Ultimately, he noted, the indirect effects will have a multiplier impact, affecting not only the targeted countries but the global economy as a whole.
Against this
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