Tariffs Could Spark Global Economic Uncertainty – European Central Bank warns U.S.

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The Vice President of the European Central Bank (ECB), Luis de Guindos, stated on Monday that trade tariffs announced by President Donald Trump of the United States could lead to economic uncertainty, highlighting that the effect on inflation remains unclear.

Reports indicated that Trump’s plan to impose 25 percent tariffs on all steel and aluminum imports into the United States, in addition to existing metals duties, marks a significant escalation in trade tensions.

“Today we woke up to the issue of steel and aluminium. Apart from the geopolitical risks, I think that the policy of the new American administration obviously creates a situation of huge uncertainty,” De Guindos said.

He explained that the introduction of tariffs would cause a supply shock, potentially impacting global economic growth.

He emphasized the importance of avoiding a trade war, urging Europeans to be cautious in their response to potential US trade tariffs.

The ECB’s second-highest official also noted that inflation in the eurozone was aligning with the ECB’s medium-term target of 2 percent, and decisions regarding the bank’s future monetary policy would be made on a meeting-by-meeting basis.

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