Goldman Sachs analysts predict that if Donald Trump returns to power in the United States, the European economy could slow down significantly. Trump’s policy, known for its protectionist orientation, could complicate economic relations between the US and the European Union, which, according to analysts, will have a negative impact on the EU, the Financial Times reports.
Goldman Sachs notes that Trump’s reinstatement of tougher trade duties imposed during his first term could limit EU exports to the US, one of the key markets for European goods. This could reduce economic growth in the EU and affect some of Europe’s largest export sectors, including the automotive and technology sectors.
Moreover, if US support for European security and defence decreases, European countries will be forced to allocate more resources to strengthen their armed forces. This could also put pressure on the EU’s budgetary expenditures and economic stability, especially in the context of heightened geopolitical tensions in the region.
Goldman Sachs emphasises that the risks of a decline in EU economic growth in the face of a possible Trump return are significant and calls on European countries to prepare for a change in US policy, which could potentially affect the macroeconomic stability of the entire region.
