How Trump’s Re-Election Could Affect Europe’s Economy

With Donald Trump re-elected as President of the USA, economic problems may yawn at Europe, particularly with key exposures expected for German, Italian, and Finnish economies.

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If Donald Trump is reelected as President of the United States, it may bring about huge change in Europe’s economy. Economists estimate a loss of €150 billion—similar to losing 1 percent of all the money made in Europe. This could happen because of new trade problems and more spending on defense.

Donald Trump is gaining in sympathy for the next election, more so after a recent event where he got hurt in Pennsylvania. Now, many people feel that he has a good chance to win again.

One big concern is that Trump wants to put taxes on things Europe sells to America, which could make it harder for European companies to do business there. Every time until now that trade has become uncertain like this, Europe’s factories slowed down and made less stuff. If that happens again, it could mean less money for countries like Germany that make a lot of the things people buy around the world.

The changes may have the greatest impact on Germany, as its factories and businesses could suffer because it sells so much to the US. Italy and Finland might also fall into trouble because they also rely a lot on making things.

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Another challenge could be on defense. Trump believes European countries need to pay more money to their armies. Now, they use about 1.75 percent of all money for defense. Trump would like them to pay 2 percent. That means countries, like Germany and France, will have to spend more money on their armies. This could make it harder to pay for other important things like schools and hospitals.

Trump also spoke about stopping the US’s aid to Ukraine through money and weapons. In case of a go, it may all fall into the hands of European countries to help Ukraine. This may cost them even more money.

It could further alter how much money Europe would have to spend on other things if Trump wins. More American money might indeed go to buying things from Europe, but the value of Europe’s money might be lowered compared to the American dollar. This could make it harder for European companies to borrow money or for people to save.

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All in all, if Donald Trump were to return to the presidency of the United States, this would be big trouble for the economy of Europe. Trade could get more difficult, countries may be asked to spend more on defense, and influences on the value of their money could change. These would alter the flow of capital into Germany, Italy, or Finland and how it would be utilized.

The rewritten version effectively conveys information from the original article, albeit simplifying it, applying vocabulary and expressions that a young audience would grasp easily.

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