On March 20th, European Central Bank President Lagarde issued a warning that changes in US trade policy could hinder economic growth in the eurozone and push up inflation levels. Xinhua News Agency reporter Zhang Fan captured footage of the headquarters of the European Central Bank in Frankfurt, Germany on January 30th.
On the 12th of this month, the United States officially implemented a 25% tariff on all imported steel and aluminum. On the same day, the European Union also made a decision to impose retaliatory tariffs on US goods worth 26 billion euros (1 euro is about 1.09 US dollars).
At the hearing of the European Parliament's Economic and Monetary Affairs Committee held on the same day, Lagarde pointed out that trade in the eurozone is highly open and deeply integrated into the global supply chain, especially closely linked to the US supply chain, making it extremely sensitive to changes in US trade policies. She cited the analysis results of the European Central Bank, stating that if the United States imposes a 25% tariff on goods imported from Europe, it will lead to a decrease of about 0.3 percentage points in the Eurozone's economic growth rate in the first year; If the EU takes tariff countermeasures against goods imported from the United States, this reduction may further expand to about 0.5 percentage points.
Lagarde emphasized that changes in US trade policy may also increase uncertainty about the inflation outlook. In the short term, the EU's countermeasures, coupled with the depreciation of the euro due to reduced demand from the US for European products, may increase inflation by about 0.5 percentage points.
Lagarde called on the EU to further deepen its trade integration with global trading partners and within the EU, in response to changes in US trade policies. She said, "The analysis of the European Central Bank shows that closer integration with other regions of the world can offset the losses caused by unilateral tariffs and countermeasures. It is crucial for the EU to maintain trade openness, and completing the latest trade agreements with other international partners as soon as possible will send a strong signal
In recent years, the eurozone has faced challenges such as high production costs, weak demand from major trading partners, and insufficient economic growth momentum. The forecast data released by the European Central Bank earlier this month showed that the economic growth rate of the eurozone will be 0.9% in 2025 and 1.2% in 2026.
(Editer：admin)
