US tariffs have had a smaller economic impact than initially feared, according to the European Bank for Reconstruction and Development (EBRD).
In its latest assessment, the development bank said trade restrictions imposed by the United States did not significantly disrupt growth across its regions of operation.
Limited Economic Fallout
The EBRD noted that while tariffs created uncertainty in global markets, the broader economic damage remained contained. In addition, many affected countries adjusted supply chains and trade routes to offset potential losses.
As a result, growth forecasts in several emerging markets remained stable despite trade tensions.
Resilient Trade Flows
According to the bank, businesses adapted quickly to the new trade environment. Furthermore, some industries diversified export destinations, reducing dependence on specific markets.
The report highlighted that resilient consumer demand and domestic investment also helped cushion the effects of higher import duties.
Ongoing Risks
However, the EBRD cautioned that prolonged trade disputes could still weigh on global economic prospects. Policymakers were urged to avoid escalation and pursue dialogue to maintain stability.
Analysts say uncertainty over future tariff policies continues to influence investor sentiment worldwide.
Outlook Ahead
The development bank expects moderate growth across its member countries, provided global trade conditions remain steady. Nevertheless, geopolitical tensions and shifting trade policies remain key risks to watch.
Conclusion
The European Bank for Reconstruction and Development said US tariffs have hit less than expected, thanks to economic resilience and market adjustments. However, officials warned that sustained trade tensions could still pose challenges ahead.
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