US tariffs would take proportion level off Dutch financial development, CPB says

AMSTERDAM (Reuters) -The sweeping commerce tariffs introduced by U.S. President Donald Trump would cut back financial development within the Netherlands by a proportion level by way of 2026, Dutch financial coverage adviser CPB stated on Thursday.

Development could be 0.4 proportion factors decrease this yr than earlier predicted, and 0.6 proportion factors much less in 2026, the CPB stated.

In its most up-to-date outlook, earlier than the brand new tariffs have been introduced, it had predicted development of 1.9% and 1.5% for 2025 and 2026 respectively.

Investments would take the biggest hit, the CPB stated, as a result of uncertainty in regards to the world financial outlook.

Exports from the euro zone’s fifth largest financial system could be much less badly affected as a result of commerce with the U.S. is just 6% of the nation’s complete exports, and tariffs wouldn’t instantly take away all American demand because of an absence of options, the company added.

The state of affairs relies on the 20% tariff Trump introduced for all items imported from the EU on April 2, however suspended for 90 days shortly afterwards. A “baseline” tariff – 10% on virtually all imports into the U.S. – took impact on April 5.

The CPB stated the impact on the Dutch financial system could be roughly the identical if the EU responded with comparable tariffs.

(Reporting by Bart Meijer; Modifying by Kate Mayberry)