ECB's Olli Rehn Warns of Global Economic Impact Due to US Tariffs

Olli Rehn, a member of the European Central Bank (ECB) Governing Council and Governor of the Bank of Finland, issued a stark warning on Tuesday. He highlighted that the tariffs imposed by United States President Donald Trump on Canada, China, and Mexico, with potential expansions to other nations, could significantly reduce global economic output. Rehn projected a decrease of more than 0.5% in the years 2025 and 2026.

At a press conference, Rehn emphasized the urgency for the Eurozone to collaboratively devise solutions that effectively bolster their collective external security. He stressed the importance of unity and strategic planning in navigating the challenges posed by these tariffs.

Additionally, Rehn shared an optimistic outlook regarding inflation in the euro area, forecasting that it would align with the ECB's medium-term target of 2%. He cited various factors that contribute to this positive trend, underscoring the resilience and adaptability of the Eurozone's economic policies.