Europe does not feel much pain from trumpet prices, says the central bank

FRANKFURT – President Trump's trade war would make Europeans feel so much pain they would ask for mercy on the negotiating table. But it doesn't work well, according to a new study from the European Central Bank.

Almost a year after the White House had imposed tariffs on European steel and aluminum, the actual damage to European exports has been surprisingly mild, according to study released on Wednesday.

Some industries, especially heavy equipment manufacturers, may even have profits. This is because the White House has imposed a wider range of tariffs on Chinese products, making competing European goods cheaper by comparison and allowing them to gain market share.

The tariffs "represent only a modest negative risk to the global and euro area prospects," said the study by the European Central Bank of Vanessa Gunnella and Lucia Quaglietti.

"Uncertainty related to protectionism weighs on financial sentiment," said the Central Bank study, adding that it was just one of the reasons for Europe's weak growth.

Still, few business managers thrive on the turmoil. "Additional trade conflicts will not be in our interest," Trumpf, a German company known for machines using lasers to cut steel, said in an email message.

The United States and China are Trumpf's two largest foreign markets, and it has factories in both countries, listed the company.

"It's good for Trumpf when it goes well for China, the US and Europe," the company said.

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