ECB Executive Highlights Concerns Over Trump's Tariffs

European Central Bank (ECB) Executive Board member Piero Cipollone expressed significant concerns regarding the economic impact of the tariffs imposed by the United States under President Donald Trump's administration. Speaking at a conference titled "Policy challenges in a fragmenting world: Global trade, exchange rates, and capital flow", Cipollone emphasized that the effects on the real economy are "likely to be material."

Rising Risks of Western Bloc Fragmentation

Cipollone pointed out the "rising risk" of fragmentation within the Western bloc, attributing it to the tariffs that "threaten long-standing international partnerships." He elaborated on how these measures could disrupt the global economic order, highlighting the potential for "potentially profound" consequences in the medium to long term.

Long-Term Consequences for Global Prosperity

The ECB official warned of the far-reaching implications of such fragmentation, not just for trade but for "growth, stability and prosperity" worldwide. Cipollone's remarks underscore the growing unease among international policymakers regarding the direction of global trade policies and their impact on economic cohesion.