ECB Official Highlights Risks of US Tariffs on Eurozone Economy

In a recent interview with Le Monde, Francois Villeroy de Galhau, a prominent member of the European Central Bank (ECB) Governing Council and Governor of the Bank of France, expressed concerns over the potential impact of the US administration's global tariffs. He estimated that these measures could reduce the Eurozone's growth by 0.25%.

Global Economy at Risk

Villeroy emphasized that the global economy stands to suffer significantly from these trade tensions, with the United States likely to be the most affected. He pointed out that the tariffs could lead to higher prices for imported goods in the US, potentially fueling inflation.

Annual Letter to President Macron

During the same day, Villeroy presented his annual letter to French President Emmanuel Macron. In it, he described the potential shock from the trade war as not "negligible," but reassured that it is not expected to plunge the euro area into a recession.