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Europe Not Feeling Much Pain From Trump Tariffs, Central Bank Says
Source: New York Times
Europe Not Feeling Much Pain From Trump Tariffs, Central Bank Says
By Jack Ewing
April 24, 2019
FRANKFURT — President Trump’s trade war was supposed to make Europeans feel so much pain they would beg for mercy at the negotiating table. But it’s not working very well, according to a new study by the European Central Bank.
Almost a year after the White House imposed tariffs on European steel and aluminum, the actual damage to European exports has been surprisingly mild, according to the study, released on Wednesday.
Some industries, notably manufacturers of heavy equipment, may have even profited. That is because the White House imposed a broader array of tariffs on Chinese products, making competing European goods less expensive by comparison and allowing them to gain market share.
The tariffs “pose only a modest adverse risk to the global and euro area outlooks,” said the study by Vanessa Gunnella and Lucia Quaglietti, who are economists at the European Central Bank.
The central bank’s study, which comes as Europe and the United States prepare to begin high-level trade talks, reinforces other research showing that the tariffs on European goods have, by themselves, not amounted to very much. They have probably hurt the United States economy more than the intended targets.
-snip-
By Jack Ewing
April 24, 2019
FRANKFURT — President Trump’s trade war was supposed to make Europeans feel so much pain they would beg for mercy at the negotiating table. But it’s not working very well, according to a new study by the European Central Bank.
Almost a year after the White House imposed tariffs on European steel and aluminum, the actual damage to European exports has been surprisingly mild, according to the study, released on Wednesday.
Some industries, notably manufacturers of heavy equipment, may have even profited. That is because the White House imposed a broader array of tariffs on Chinese products, making competing European goods less expensive by comparison and allowing them to gain market share.
The tariffs “pose only a modest adverse risk to the global and euro area outlooks,” said the study by Vanessa Gunnella and Lucia Quaglietti, who are economists at the European Central Bank.
The central bank’s study, which comes as Europe and the United States prepare to begin high-level trade talks, reinforces other research showing that the tariffs on European goods have, by themselves, not amounted to very much. They have probably hurt the United States economy more than the intended targets.
-snip-
Read more: https://www.nytimes.com/2019/04/24/business/europe-us-tariffs-trade-war.html
