Just when it seemed that the eurozone economy was starting to look better again, the escalation of the trade war between the US and China soured the mood. We shouldn’t forget that Europe (especially Germany) is very exposed to international trade. Any trade slowdown will leave its mark on the eurozone economy. While some might argue that Europe could benefit from the US-China conflict through trade diversion, we think that the overall negative effect on world growth will be more important. What’s more, Europe itself is likely to be in the line of fire if President Trump decides to impose import tariffs on cars later ... (full story)