7 April | Euro

Greek Central Bank head warns Trump’s tariffs may cut eurozone GDP growth by up to 1%

Greek Central Bank head warns Trump’s tariffs may cut eurozone GDP growth by up to 1%

Greek Central Bank Governor Yannis Stournaras told the Financial Times that US tariffs risk shaving 0.5–1% off eurozone GDP growth. Stournaras argued that US trade policies are creating unprecedented uncertainty for the global economy. Reuters reported his remarks, citing the original interview.

The European Union is considering retaliatory tariffs on $28 billion worth of US imports. These measures would respond to the 25% duties the States imposed on steel, aluminum, and automobiles from the EU.

According to European Central Bank (ECB) estimates, the American tariffs alone could reduce the eurozone’s GDP growth by 0.3% in the first year. If the EU enacts countermeasures, the impact could rise to 0.5%.

Meanwhile, Reuters reported that EU inflation dipped to 2.2% in March, down from 2.3% in February. This decline strengthens expectations that the ECB may cut interest rates on April 17.

The tariffs imposed by Trump on April 2, including a 10% prime rate on all US imports, target about 60 countries. Bilateral trade between the US and the EU in 2024 totaled $365.6 billion in imported American goods to the EU and $585.7 billion in European exports to the States.

Elena Berseneva MarketCheese
Period: 26.06.2025 Expectation: 670 pips
Buying AUDUSD with target of 0.66 amid upward trend and geopolitical instability
Yesterday at 11:11 AM 49
Period: 23.06.2025 Expectation: 3500 pips
ETF market developments fuel bitcoin's renewed upswing
Yesterday at 09:44 AM 46
Brent sell
Period: 25.07.2025 Expectation: 500 pips
Maintaining position on Brent with target at $68.50
Yesterday at 09:44 AM 22
Period: 20.06.2025 Expectation: 210 pips
Only 5930 level stands between S&P 500 and correction toward 5800
16 June 2025 47
Period: 26.06.2025 Expectation: 1600 pips
Silver gains strength amid geopolitical tensions and industrial demand
16 June 2025 55
Brent sell
Period: 25.07.2025 Expectation: 600 pips
Selling Brent targeting $68.5 per barrel
16 June 2025 34
Go to forecasts