ECB Governing Council Member Highlights Tariff Impacts

During his recent visit to Washington, Joachim Nagel, a member of the European Central Bank (ECB) Governing Council and President of the Bundesbank, expressed his confidence that the inflationary effects of tariffs would be more pronounced in the United States compared to Europe.

"I am fairly certain the inflation effect caused by tariffs will be stronger in the United States than in Europe," Nagel stated, underscoring the differential impact anticipated across the Atlantic.

Economic Growth Concerns in Europe

Nagel also touched upon the implications for economic growth, noting, "As far as economic growth is concerned, which of course also depends on the level of the respective tariffs, the impact in Europe will also be significant for Germany." This remark highlights the broader economic ramifications beyond inflation, particularly for Europe's largest economy.