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flag EU economy grew 0.4% in Q1 2025, but Trump's tariffs cast shadows over future recovery.

flag Europe's economy showed stronger growth in the first quarter of 2025, with a 0.4% increase, up from 0.2% in late 2024. flag However, US President Donald Trump's new tariffs, including a 20% rate on EU goods, have dampened recovery hopes. flag 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. flag 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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