ECB Official Warns of Trade War Consequences

European Central Bank Governing Council Member and Latvian Central Bank Governor Martins Kazaks 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 EU's export-driven economies, leading to increased prices and diminished 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, pointing out the potential slowdown in economic activity and adverse effects on the labor market.

Trump's Tariff Threats Escalate Tensions

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