Energy crisis, imports from China, Trump. The Economist wrote about a triple shock for the European economy

The European economy has encountered a “triple shock.”

This is reported by The Economist.

The first was the energy crisis triggered by Russia’s invasion of Ukraine.

Now, a wave of cheap imports from China may follow, which, while benefiting consumers, could harm producers and exacerbate social and industrial conflicts.

And a year from now, Donald Trump could return to the White House and impose huge tariffs on European exports.

Since the end of 2022, the economies of the EU and Britain have not grown at all, although they desperately need it to finance increased defense spending.

Long-standing European obstacles to growth persist – rapidly aging populations, excessive control by regulatory bodies, and insufficient market integration.

The good news is that the energy shock has already passed its “peak pain” moment, and gas prices have significantly declined.

But other problems are just beginning. China’s economic growth has slowed, and Beijing wants to compensate by further increasing the volume of its production and exports abroad.

Currently, China is focusing on “green” goods, primarily electric vehicles, which makes European manufacturers nervous.

And after November, Trump could return. During his first presidency, he imposed tariffs on the import of steel and aluminum, including from Europe, leading to retaliatory measures from the EU. Then Biden came, and a complex agreement was reached.

But now, Trump is threatening to impose 10 percent tariffs on all imports, which could lead to another round of US-EU trade war.