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According to the latest research conducted by the European Central Bank (ECB) and published in its economic bulletin of the April monetary policy meeting, a new round of tariffs imposed by the US on its main partners would only cause a “modest decrease” in the pace of economic growth in the Eurozone.

Key Highlights:

The study simulated a two-way, 10 percent increase in tariff and other trade barriers between the world’s largest economy and all its partners.

But escalating trade tensions could have grave consequences for the global economy.

Eurozone car industry would incur losses of 4% on US tariffs, simulation shows.

Consequences of the tariffs implemented last year pose only a modest adverse risk to the global and Eurozone outlook.