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.