ECB Executive Board Member Highlights Risks of Tariffs

European Central Bank (ECB) Executive Board member Piero Cipollone expressed concerns on Tuesday regarding the significant impact of tariffs imposed by the United States under President Donald Trump. Speaking at a conference titled "Policy challenges in a fragmenting world: Global trade, exchange rates, and capital flow", Cipollone emphasized the tangible effects these measures could have on the real economy.

Rising Risks of Fragmentation

Cipollone pointed out the "rising risk" of fragmentation within the Western bloc, a situation exacerbated by the current tariff policies. These actions, according to the ECB banker, not only threaten to dismantle long-standing international partnerships but also pose a significant challenge to global economic cohesion.

Long-Term Consequences for Growth and Prosperity

The medium- to long-term implications of such fragmentation could be "potentially profound", affecting not just economic growth but also stability and prosperity worldwide. Cipollone's remarks underscore the delicate balance between national policies and global economic health.