Economist estimated the consequences of Trump's imposition of duties of 10-20% for Europe

The introduction of duties of 10-20% on goods from Europe by US President-elect Donald Trump will have a radical impact. It threatens to slow down the global economy. In the US, this move will lead to price increases, spurring inflation. This opinion was shared with "Izvestia" on December 20 by financial analyst Mikhail Belyaev, PhD in Economics.

Back in November during the election race, Trump promised duties of 10-20% to Europe, a minimum of 10% to China, 40% on certain categories of goods, and 25% to Canada and Mexico.

"That's going to have a radical impact. It's going to restrain foreign trade. Prices domestically, in the United States, will increase. If prices go up, inflation goes up, that means the Federal Reserve will still have to hold off on easing monetary policy, that is, lowering the key rate, to keep inflation in check. In the United States, inflation is held down by the key rate, unlike in Russia. This will impose certain difficulties for the development of the economy and its movement forward," Belyaev explained.

According to him, when these duties are imposed, other countries, because they trade with the U.S. and their foreign trade earnings depend to a large extent on the success of their relations with the U.S. economy, will also experience difficulties because they will not receive the money they could have received.

"Most importantly, they realize that this will lead to a reduction in exports themselves. That will also hold back the economic development of these countries, maybe except for China, which has a big margin of safety. The country has efficient production, and it has quite profitable companies. They, of course, can overcome this duty," the economist said.

The expert added that with the introduction of these duties, the U.S. will have an inhibiting effect on the global economy.

Earlier in the day, Trump threatened the European Union (EU) with increased import duties if the association does not increase purchases of American energy resources. The corresponding post the politician published on his page in the social network Truth Social. If the EU does not increase purchases, "tariffs on the full program are waiting for him," the president-elect threatened.

In November, The Washington Post (WP) reported that the trade duties that Trump is going to introduce could cause serious damage to EU countries. It is specified that major European economies are currently already lagging behind the United States as a result of the pandemic. According to economists, Trump's "protectionist measures" could cause further recession in Europe and complicate relations between allies.

The election for the 47th president of the United States was held on November 5. In the popular vote, Trump received 50% of the vote, while Democratic candidate Kamala Harris received 48.4%. Later, the politician, speaking to supporters, said that his goal as head of state considers the end of military conflicts in the world. The president-elect will take office on January 20, 2025.