Editor’s Note: President Trump's 25% tariff on EU imports is a bold move to strengthen American industry and level the trade playing field. Economist Desmond Lachman weighs in on how this could shake Europe’s economy—and what it might mean for the U.S. market. An interesting read as the trade battle unfolds.
By Desmond Lachman - Project Syndicate
Given Germany’s shrinking economy and serious public-debt problems in both Italy and France, Donald Trump’s proposed import tariffs risk triggering a Europe-wide recession and another eurozone debt crisis. Trump’s “America First” trade agenda would soon blow back on the United States – not least on his beloved stock market.