European Central Bank President Christine Lagarde said another volley of tariffs from US President Donald Trump would have only a minor impact on inflation in Europe.
“If we look in the short term, the immediate effect is relatively minor,” Lagarde said Wednesday in an interview with RTL radio.
According to the ECB chief, Trump’s latest threats would raise the average tariff rate for the euro area to 15% from around 12%.
“We have an inflation that would be very slightly affected, probably to the upside, but as we have inflation under control at 1.9%, the impact would be minimal,” Lagarde said.
Still, she warned that big exporting countries including Germany would take a larger hit than others, also cautioning about a possible confidence shock.
“What is far more serious is the degree of uncertainty created by the constant reversals of President Trump,” Lagarde said.