EU business halts amid fears over US tariffs

Europe’s economic upswing has slowed further in the second quarter amid concerns over global trade disputes that have seen the world’s major powers impose new tariffs on each other.

Official figures released yesterday showed growth in the 19 countries that use the euro currency eased to a quarterly rate of 0.3 per cent, weaker than markets had expected and down from 0.4 per cent in the first quarter.

Fears that new tariffs would slow global commerce has been weighing on the outlook in Europe, which is heavily dependent on trade.

Surveys of business confidence have recently indicated financial leaders are concerned about the impact of import taxes imposed by US president Donald Trump on global steel and aluminium.