ECB Governor Expresses Concerns Over US Tariff Policies

Pierre Wunsch, a key figure on the European Central Bank (ECB) Governing Council and Governor of the National Bank of Belgium (NBB), voiced his apprehensions on Thursday regarding the impact of US President Donald Trump's tariff policies on the ECB's interest rate decisions. "We were on a steady path, and I was quite optimistic," Wunsch shared with CNBC. He elaborated, "I thought inflation might be the less exciting aspect of 2025, a year already full of uncertainties. However, introducing tariffs into the mix complicates matters significantly."

Potential Consequences of Tariffs

Wunsch highlighted the dual threat tariffs pose: stifling economic growth and potentially accelerating inflation. His comments follow Trump's announcement of imposing a 25% tariff on all vehicles manufactured outside the US, a move that extends the reach of previously established tariffs on steel and aluminum globally.