18 July 2025, Bremen, Bremerhaven: Containers are handled at the overseas port.<\/p>\n
Sina Schuldt\/picture alliance via Getty Images)<\/p>\n
The euro zone economy eked out a better-than-expected 0.1% growth in the second quarter, compared to the previous three-month stretch, flash data from Eurostat showed Wednesday.<\/p>\n
Economists polled by Reuters had anticipated euro zone growth to flatline in the period, following a 0.6% expansion in the first quarter.<\/p>\n
“The slowdown in euro-zone GDP growth in Q2 came as no surprise as the boost from tariff front-running waned,” Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics, said in a note.<\/p>\n
“Overall, the data suggest that the euro-zone has been resilient to the shifts in US trade policy so far. Front-running of the tariffs gave the economy a boost in Q1, and the impact of trade policy uncertainty has seemingly been limited so far,” he added.<\/p>\n
U.S. tariffs and their impact<\/a> have been a top concern for European economies so far this year. U.S. President Donald Trump’s so-called reciprocal tariffs initially<\/a> came into effect in April as the second quarter kicked off.<\/p>\n The duties were then however temporarily<\/a> reduced, but the last few months have been plagued by much uncertainty as negotiations for trade agreement were underway. Some higher sectoral tariffs, including on autos<\/a> and steel and aluminum<\/a>, have also been in effect.<\/p>\n The European Union over the weekend agreed<\/a> to a trade framework with the U.S., which includes 15% tariffs being imposed on the bloc. Some goods are set to be exempt, and levies on autos have been reduced to the baseline level.<\/p>\n European bond yields were little changed after the data release, with both the French<\/a> and German<\/a> 10-year bonds last up by less than one basis point.<\/p>\n