As global markets brace for escalating trade tensions, this AXA IM Macrocast offers a comprehensive analysis of the economic fallout from the proposed 50% U.S. tariff on EU imports and its broader implications.
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A 50% U.S. tariff could cause a 2% GDP contraction in the Eurozone, while the U.S. faces rising inflation (+2.2%) and a projected 0.8% GDP hit.
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Market response was counterintuitive: the dollar weakened despite tariff threats, reflecting concerns over U.S. fiscal policy and political risk.
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The euro gained, as investors questioned the sustainability of the U.S. policy trajectory under the “OBBB” fiscal package.
Discover how policy uncertainty is reshaping market expectations.
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