President-elect Donald Trump’s proposed tariffs aim to penalize China but could have a ripple effect, impacting several US allies. Trump’s plan includes levies of up to 60% on Chinese goods and 20% on imports from other countries.
Experts warn that Europe could suffer significantly under Trump’s tariff regime. Dr. Rishav Bista, an economics professor at Texas Christian University, notes that while the trade war might primarily target China, it could strain US-EU trade ties.
Edward M. Feasel, president of Soka University of America, cautioned that higher tariffs could disrupt global exports and GDP, hitting US allies hard.
Financial models project dire outcomes for Europe and China in various trade war scenarios:
– China: Expected losses of $34.2 billion in 2025-2026 under a contained trade war.
– Europe: Could lose up to $38.6 billion in the same period.
In a more severe scenario, China’s losses could climb to $125.3 billion, with Europe close behind at $124.8 billion.
The economic fallout from Trump’s tariff policies could destabilize global trade, putting billions at stake for key US trading partners. Allies may need to brace for significant financial impacts as tariff negotiations unfold.
