European Central Bank: Trump’s tariffs threaten the growth of the Eurozone economy

Cipollone added during a pre-recorded interview at the financial conference that the tariffs will weaken the economy by reducing consumption, which could lead to easing inflationary pressures.

He explained that US trade restrictions will become stronger Dollarwhich makes the import of primary goods more expensive, and possible European responses may lead to an increase in production costs.

In another analysis, Cipollone said: “It is likely that Chinese manufacturers will lose the ability to enter… American market To direct their products to European marketswhich can lower prices here. “This combination of factors leads me to think that we will see a decline in growth as well as a decline in inflation.”

Trade war fears

The statements come amid growing concerns about the outbreak of a global trade war as a result of the trends Trump A protectionist, he has promised to impose tariffs of up to 10% on European imports, prompting market concerns about the impact on global trade.

In return, take care International Monetary Fund He believes that these tariffs can hinder global growth, pointing to their negative effects on commodity-exporting countries, such as the countries of the European Union.

The European Union plans to respond

She stated European Commission It is reassessing its economic strategies and considering how to deal with new tariff policies that could be imposed by the US administration.

This includes taking similar measures on some US exports.

Inflation and the dollar effect

On the other hand, it can lead to high Dollar This makes oil imports more expensive, adding inflationary pressures to European economies.

However, some believe that Trump’s policy of supporting domestic energy production in the United States may increase global supply, limiting price increases.