Trump tariffs to shake the world trade

President Donald Trump has announced new import tariffs on all goods entering the US, in the biggest upheaval of the international trade order since the aftermath of World War Two. However, the chaotic approach of Trumps administration has sent measures of trade policy uncertainty skyrocketing to record high levels already prior to Wednesdays announcement. Such instability regarding the business environment alone imposes significant economic costs by making spending, investment, hiring, and transport decisions harder. The tariffs Trump announced will differ country by country. A 20% tariff on EU imports will take effect on April 9th , with the EU promising to retaliate. Apart from that, a 25% tariff on vehicles is in place as of April 2nd . Within the region, Slovakia is the most exposed to the automotive trade restrictions. Nevertheless, the 20% duty is negative for the growth in the whole CEE. Although direct impact from the US tariffs could be rather contained, the indirect impact is likely to shave off growth prospects in the whole Eurozone.