“Initially we thought that US President Donald Trump was using the tariffs to achieve some other things, but it seems that the tariffs exist and will remain,” Professor of Political Economy at the National University of Athens, Napoleon Maravegias, said in an interview with Naftemporiki TV.
“Trump is imposing tariffs of 28 billion euros, mainly on steel and aluminum, and the EU is somehow responding with tariffs on many products originating from the US, products – one could say – emblematic of the United States,” he emphasized.
The four consequences of the tariffs
Maravegias analyzed the four consequences of the American President’s tariffs, saying: “The first issue is that economic activity is shrinking both from the United States and from the European Union side, because the difficulty of exporting obviously causes problems for companies that export; we may have a smaller or larger recession on both sides, in terms of production.”
“The second issue is inflation, which is a very serious matter because until recently, after the pandemic and after the war in Ukraine, we had an inflationary wave that was very significant on both sides of the Atlantic,” he noted, adding, “the third issue is the high uncertainty that prevails worldwide, which creates problems in stocks, securities and bonds.”
The fourth issue is “the breakdown of some unity that existed in the West,” he concluded.
