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EU economy grew 0.4% in Q1 2025, but Trump's tariffs cast shadows over future recovery.
Europe's economy showed stronger growth in the first quarter of 2025, with a 0.4% increase, up from 0.2% in late 2024.
However, US President Donald Trump's new tariffs, including a 20% rate on EU goods, have dampened recovery hopes.
The EU's heavy reliance on exports, particularly to the US, and the tariffs' impact on business and consumer optimism have led to a downgrade in growth forecasts for the year.
The European Commission's economic sentiment indicator hit a low of 93.6 in March, reflecting the increased trade tensions and uncertainty.
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