US tariffs would take percentage point off Dutch economic growth, CPB says

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AMSTERDAM (Reuters) -The sweeping trade tariffs announced by U.S. President Donald Trump would reduce economic growth in the Netherlands by a percentage point through 2026, Dutch economic policy adviser CPB said on Thursday.

Growth would be 0.4 percentage points lower this year than earlier predicted, and 0.6 percentage points less in 2026, the CPB said.

In its most recent outlook, before the new tariffs were announced, it had predicted growth of 1.9% and 1.5% for 2025 and 2026 respectively.

Investments would take the largest hit, the CPB said, due to the uncertainty about the global economic outlook.

Exports from the euro zone’s fifth largest economy would be less badly affected because trade with the U.S. is only 6% of the country’s total exports, and tariffs would not immediately take away all American demand due to a lack of alternatives, the agency added. 

The scenario is based on the 20% tariff Trump announced for all goods imported from the EU on April 2, but suspended for 90 days shortly afterwards. A “baseline” tariff – 10% on almost all imports into the U.S. – took effect on April 5.

The CPB said the effect on the Dutch economy would be more or less the same if the EU responded with comparable tariffs.

(Reporting by Bart Meijer; Editing by Kate Mayberry)