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EU & US: Escalating Economic Exigencies: EU Examines Epochal Effects

The European Commission's comprehensive analysis reveals that unprecedented US tariff increases under the second Trump administration paradoxically weaken American economic foundations rather than strengthening them. Elevated import duties increase production costs across US industries heavily dependent on imported inputs while simultaneously eroding household purchasing power through consumer price inflation. These dual pressures compel Federal Reserve monetary tightening, further dampening domestic demand. Critically, the study quantifies that only one quarter of tariff burdens actually fall upon foreign exporters, the remaining three quarters being shouldered by American firms & consumers, fundamentally contradicting protectionist rhetoric suggesting foreigners bear primary costs.

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