ECB Official Highlights Risks of US Tariffs on Eurozone Economy

Francois Villeroy de Galhau, a key figure in the European Central Bank (ECB) Governing Council and Governor of the Bank of France, has issued a stark warning regarding the potential impact of the US administration's global tariffs on the Eurozone's economic growth.

In a revealing interview with Le Monde, Villeroy suggested that the ongoing trade war could diminish the Eurozone's growth by 0.25%. He emphasized, "The global economy will suffer, and everyone will lose, but first and foremost the United States." Villeroy also pointed out that the tariffs are likely to increase US inflation as the prices of imported goods rise due to the new levies.

Annual Letter to President Macron

Further elaborating on the economic implications, Villeroy presented his annual letter to President Emmanuel Macron, where he described the trade war's shock as not "negligible." However, he reassured that it is not expected to plunge the euro area into a recession.