THE HAGUE, May 1 (Xinhua) -- Dutch economic growth is expected to be lower this year and next if U.S. President Donald Trump continues with the import tariffs, the Netherlands Bureau for Economic Policy Analysis (CPB) predicted on Thursday.
The CPB study, which examined the impact of the tariffs on the Dutch economy, forecasts gross domestic product (GDP) growth of 1.5 percent in 2025, down from the previously projected 1.9 percent, and just 0.9 percent in 2026 instead of the earlier estimate of 1.5 percent, should the tariffs remain in place.
"The import tariffs announced by the Trump administration on April 2 increase the cost of trade and spark major economic uncertainty," the CPB said. "As a result, investment and exports will decline, leading to lower GDP growth."
The CPB's analysis focused on the effects of a unilateral 20 percent U.S. tariff on European Union goods, announced on April 2 but later suspended. The study also considered a scenario in which affected countries respond with equivalent retaliatory tariffs.
"In addition to their direct and indirect effects on trade, import tariffs also lead to increased uncertainty in the economy," the CPB added. "This has a negative impact on investment and can also trigger instability in financial markets." ■