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Investing.com -- The upcoming potential scope and scale of US tariffs, set to be clarified by 2nd April, pose a significant risk to the labor recovery in the European Union (EU), according to Deutsche Bank (ETR:DBKGn).
Bank analysts suggest that broad-scale reciprocal tariffs on all exports to the US could negatively impact the EU and UK’s GDP by approximately 0.9% and 0.6% respectively.
Moreover, the employment sector in the EU could face a substantial reduction, with an estimated decrease of around 1.7 million jobs. The countries that would be most affected by this change include Germany, Italy, the UK, France, and Poland.
These nations would account for nearly two-thirds of the overall employment reduction, with Germany facing a potential loss of 400,000 jobs, Italy 240,000, the UK 150,000, France 140,000, and Poland 100,000.
The sectors that are most likely to face the brunt of these potential tariffs are blue-collar manufacturing, logistics, and distribution roles. Consequently, this situation could hinder the resolution of skills shortages in areas such as IT and engineering.
As the date of 2nd April approaches, the exact details of the US tariffs remain uncertain, but their potential impact on the EU labor market is a significant concern.
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