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EU Lowers Growth Forecast as US Tariffs Expected to Hit Exports

The European economy will grow more slowly than previously expected this year and next as higher U.S. tariffs hit exports, while inflation will cool more rapidly, the European Union's economists said Monday.

In its twice-yearly report on the economic outlook, the European Commission warned that a further rise in tariffs would inflict more damage on the bloc's economy, but also said increased spending on defense and a German investment drive to repair frayed infrastructure could lift activity.

The Commission said it now expects the combined...

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