European Central Bank's Warning on US Trade Policies

Martins Kazaks, a member of the European Central Bank Governing Council and Governor of the Latvian Central Bank, has issued a stark warning regarding the potential impacts of US President Donald Trump's trade restrictions. According to Kazaks, these measures could severely harm Latvia's and the broader EU's export-driven economy, leading to increased prices and weakened growth.

The Ripple Effects of Trade Barriers

In a detailed interview with LTV's Rita panorama, Kazaks elaborated on the detrimental effects of trade barriers, especially for Europe. "All restrictions and obstacles to trade are bad for us," he emphasized, highlighting the potential for slowed economic activity and negative impacts on the labor market.

Trump's Tariff Threats Revisited

Kazaks' comments come in the wake of President Trump's threats to impose significantly larger tariffs on the EU and Canada, should they oppose US interests. This escalation follows criticism from Canadian and EU leaders regarding the new auto tariffs introduced by the US administration.