ECB Vice-President Highlights Concerns Over Trump's Tariffs

European Central Bank (ECB) Vice-President Luis de Guindos expressed serious concerns on Thursday regarding the potential impact of United States President Donald Trump's tariffs on European Union goods, particularly automobiles. Speaking at the Institute of International Finance's (IIF) event in Brussels, de Guindos emphasized that these tariffs could primarily affect the bloc's economic growth, with only a short-term influence on inflation.

The Risks of a Trade War

De Guindos cautioned that a trade war between the EU and the US would be "extremely detrimental" for the expansion of the gross domestic product (GDP). He urged the ECB to adopt a "very prudent" approach to its policy in light of these challenges.

No Winners in a Trade Conflict

Reflecting on previous statements, de Guindos reiterated his warning that "everyone would lose" in a trade war between the EU and the US. Such a conflict, he noted, would leave a "very negative" mark not only on European but also on global economies.