Impact of US tariffs on Europe: How will China make more profits from US tariffs? Will the ECB have to cut interest rates again?
The US may have levied heavy tariffs on China, but this will significantly impact the European Union’s economy, as China could now reroute its exports from the US to the EU. The EU already imports $400 billion worth of goods from China, including machinery, electronics, and batteries. A further increase in Chinese exports may force the EU to cut interest rates, which would further reduce inflation.
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