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The transatlantic trade-dependent Euro Area is prepping for Donald Trump’s second term and the return of higher tariffs. 

US tariffs may lower Euro Area GDP by 0.4%, the Institute of International Finance (IIF) estimated in a Monday note. With many European countries yet to fully recover from the pandemic and increased competition from China, renewed tariffs could lead to a “substantial economic hit,” the report adds. 

Among the countries most likely to be impacted are Germany, France and Italy. Machinery and industrial goods exports from Italy and Germany are expected to be…

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