ECB Vice President Luis de Guindos Issues Stark Warning on Trade War

In a recent interview with Spanish broadcaster RTVE, European Central Bank (ECB) Vice President Luis de Guindos expressed grave concerns over the potential for a trade war between the United States and the European Union. He emphasized that such a conflict would result in no winners, stating unequivocally that "everyone would lose" due to a significant reduction in economic activity.

The Call for Caution and Intelligence in Response to Tariffs

De Guindos urged European officials to approach the situation with caution and intelligence, especially in their public statements regarding the tariffs on EU goods and the global duties on steel and aluminum imports announced by US President Donald Trump. He reminded his audience that "initial announcements sometimes fail to materialize," suggesting that the current tensions might not necessarily escalate into a full-blown trade war.

Uncertainty and Complexity in the Global Economy

However, the ECB Vice President did not shy away from acknowledging the "extremely uncertain" and "the most complex since COVID" situation in the global economy. He attributed this to a "paradigm shift" in the world's leading economy, hinting at the potential for significant disruptions in international trade and economic relations.