US tariffs and escalating geopolitical tensions are having incalculable effects on the European economy, and that the European Union (EU) must champion open, rules-based trade and diversify its economic relationships, Spanish economist Ramon Calduch said during an interview with China Media Group (CMG) in Madrid on Monday.
Calduch's comments echoed recent remarks by European Central Bank (ECB) President Christine Lagarde, who noted that "geopolitical tensions are bringing critical dependencies and chokepoints into sharper focus" across supply chains, while Europe’s growth model is simultaneously undergoing a significant transformation.
In light of tariff conflicts with the United States, Calduch said that EU members must defend their interests while also fostering cooperation with economies in other regions to enhance their trade relations.
"We are indeed experiencing a profound transformation of the international order. The EU can no longer assume that the economic, trade, and security conditions of recent decades will remain unchanged. But I also believe we must view this transformation as an opportunity. The EU needs to develop greater strategic autonomy, enhance its own competitiveness, and diversify its international relations," he said.
Calduch warned that recent escalating tensions in the Middle East, driven by U.S. actions, could pose incalculable risks to the EU economy.
"[The escalation of the conflict] could have very significant economic consequences for the EU. I believe it would pose incalculable risks to the EU economy. This conflict affects aspects that are crucial to the EU, such as energy, maritime transport, supply chains, inflation rates, and business confidence," he said.
