ECB’s Schnabel expects negative impact of Trump's import tariffs on Europe and US

Isabelle Schnabel of the European Central Bank (ECB) stated that US import tariffs are contributing to global trade uncertainty and exacerbating the European Union's structural problems. The regulator will keep a close eye on the dynamics of inflation and GDP growth in the region following the implementation of the US restrictions, she noted during an economic forum in Italy.

When announcing the new tariffs last Wednesday (April 2), Donald Trump declared the date Liberation Day, framing it as a symbol of the US’s path to prosperity. However, the ECB's Schnabel expressed skepticism about the US president's choice of wording. She argued that these measures would destabilize global trade and harm not only partner countries of the US, but also the States itself.

Schnabel also emphasized that the European Union has never aimed to obstruct US economic growth. EU leaders, she noted, are solely focused on fostering prosperity within their own region.