Donald Trump’s recently announced the implementation of the imposition of 25% tariffs on European products, making the United States and the European Union one step away from a trade war.

As per Donald Trump statetement: “We have made a decision that we will announce very soon and it will be 25% in general and this will be for cars…”

On the other hand, Emmanuel Macron states “If they are confirmed (the tariffs), then the Europeans will react. And so there will be reciprocal tariffs. Because we have to protect and defend ourselves”

As economic analyst Yiangos Hatzigiannis states, “it is an unfavorable development for the European Union. The European Union exports much more products to America than it imports,” “meaning that if tariffs are indeed imposed, the EU will be hit the hardest.”

“It will hit products that go to the heart of Europe’s productive power, such as cars, agricultural products, etc.”, adds economist Yiannis Telonis.

Mr. Telonis states that “it is obvious that we are entering a state of war between the two sides, a trade war”.

The side effects in Cyprus will come through the European Union.

Completing, Mr. Hatzigiannis emphasizes that, “we do not import or export a significant number of products from America. However, we are a member of a wider family, and in particular the eurozone will be significantly affected in a trade war with America”

Finally, Mr. Yasemidis clarifies that “if Germany, France or countries where Cyprus receives money from investors or has tourism, you understand that if there is a contraction of the economy in their countries, they will make different choices.” With tariffs acting as a brake on the movement of goods and capital.