Pro-stealing art without attribution
Eurozone (and UK) always had high levels of privilege. EUR/USD is the most traded and liquid currency pair.
Many third world countries suffered from currency crises in 2022 but Europe only saw slightly higher inflation, that comes from the privilege.
They can choose to take a hit to their profit margins by adjusting prices. They can only do that so much before margins are wiped out completely. This time tariffs are much broader and higher.
Why? In some cases it may make up for it with higher volume (but that too depends on demand). This applies to exporters, wholesalers and retailers. Or they may not be find any place else to export to (or sell locally).
I read a paper on this recently but can’t find it :(, apparently with steel (during Trump-I) the exporters were more willing to do it but it’s not the case with every good.
Fiscal deficits are not completely discretionary, there are automatic stablizers and balances of private and foreign sectors. And no, she doesnt have to raise taxes or cut spending, she can let the deficit be wherever it is.