ECB's Stark Warning on US Tariffs Impact

Luis de Guindos, the Vice President of the European Central Bank (ECB), issued a stark warning on Friday regarding the potential negative impacts of escalating trade tensions, particularly new US tariffs, on the global and European economies.

Trade War: A Threat to Economic Growth

De Guindos emphasized the detrimental effects a trade war could have on economic growth, describing it as "very negative". He pointed out that the protectionist policies of the new US administration could also adversely affect banking and fiscal policies.

Unprecedented Uncertainty in the Eurozone

The ECB Vice President also highlighted the unprecedented level of uncertainty currently facing the eurozone, which he noted is the highest since the pandemic. This uncertainty, coupled with weakened consumer confidence and sluggish growth, further complicates the prospects for recovery.