Goldman Sachs: Trump Tariff Dispute May Reduce Eurozone GDP by 0.1%

Economists at Goldman Sachs stated that Trump's latest threat to impose a 10% tariff could lead to a reduction of about 0.1% in the eurozone's gross domestic product. The Goldman Sachs team expects that the real GDP of affected countries may decline by 0.1% to 0.2%, with Germany's economic growth potentially dropping by 0.2% to 0.3%. The report pointed out that if market confidence is hit or financial market volatility intensifies, the losses could further expand. Although trade tensions have triggered turmoil in global financial markets, several strategists believe that the impact of this episode on European stock markets is likely to be short-lived.