A new report commissioned by the German government shows that the country—and indeed the wider European Union—could plunge into recession if there is an escalation of trade disputes with the United States. And if the EU strikes back in those disputes, the researchers said, the result could be recession in the U.S.
As things stand, the U.S. is levying tariffs on imports of EU steel and aluminum, while the EU has retaliated with tariffs on $3.2 billion worth of U.S. imports.
