Luxembourg could experience economic ripple effects from US trade protections despite minimal direct exports, STATEC cautioned Thursday, as new tariffs threaten to disrupt global markets.
Luxembourg could face indirect economic consequences from current US trade measures, according to a National Institute of Statistics and Economic Studies (STATEC) analysis. While the Grand Duchy exports relatively few goods directly to the United States, experts warn that broader market disruptions may still affect the local economy.
The Trump administration's new tariffs – implemented to reduce the US trade deficit, shield domestic industries, and encourage local production – currently pose the most significant concern. STATEC cautions that such protectionist policies typically trigger retaliatory measures from trading partners.
Economic modelling suggests these trade restrictions generally depress global commerce, slow economic growth, and drive inflation upward. Early effects are already visible: financial markets have declined since February, US consumers face rising prices, and the euro has gained significantly against the weakened dollar in recent weeks.
