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Goldman Sachs economists are running the numbers on President Trump's proposed 10% tariff, and the findings point to a modest but notable drag on eurozone growth. Their analysis suggests the new tariff regime could pare roughly 0.1% off the euro area's gross domestic product.
While 0.1% might sound negligible, this kind of headwind ripples through asset prices and market sentiment. A slower eurozone means softer demand, which typically pressures risk assets including crypto markets that thrive on risk-on conditions. When major trading blocs face economic friction, investors tend to rotate toward safe havens, reshuffling capital flows across global markets.
The timing matters too—with central banks already navigating inflation and growth tradeoffs, additional fiscal drag from tariff wars adds another layer of complexity. Traders watching macro trends should keep this eurozone pressure point on their radar.