EU Warns U.S. Protectionism Could Hinder Economic Growth

The European Union cautioned that U.S. protectionist trade policies could undermine the Eurozone’s modest growth trajectory, the Associated Press reported.

European Economic Commissioner Paolo Gentiloni emphasized the risks to the EU's growth posed by potential tariffs under U.S. President-elect Donald Trump’s administration.

While the EU economy is rebounding from stagnation, with the eurozone expected to grow 0.8% in 2024 and 1.3% in 2025, European Economic Commissioner Paolo Gentiloni emphasized the risks posed by potential tariffs under U.S. President-elect Donald Trump’s administration.

“A possible protectionist turn in U.S. trade policy would be extremely harmful for both economies,” Gentiloni said, pledging cooperative engagement with the incoming administration while defending open trade.

The commission attributed the recovery to wage increases boosting consumer purchasing power but noted lingering risks.

"Growth remains modest and exposed to important downside factors,” Gentiloni added, while acknowledging signs that consumption restraints are easing.