Warning from the European Central Bank

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 proposed trade restrictions. According to Kazaks, these measures could significantly harm Latvia's and the broader EU's export-driven economy, leading to increased prices and stifled growth.

The Risks of Trade Barriers

In a recent interview with LTV's Rita panorama, Kazaks emphasized the detrimental effects of trade barriers, particularly for Europe. "All restrictions and obstacles to trade are bad for us," he stated, highlighting the potential for these policies to slow down economic activity and negatively affect the labor market.

Trump's Tariff Threats

Kazaks' comments come in the wake of President Trump's threats to impose "far larger" tariffs on the EU and Canada, should they act against US interests. This warning was prompted by criticism from Canadian and EU leaders regarding Trump's new auto tariffs, underscoring the growing tensions in international trade relations.