US President Donald Trump’s tariff politics make the way to the European Central Bank’s European interest rate “more complex”, according to Pierre Wunsch, a member of the ECB Governing Council.
“We went in the right direction. And I was actually pretty relaxed,” CNBC said on Thursday, Karen Tso said on Thursday on the sidelines of the IIF Europe Summit in Brussels.
“If we forget the tariffs …. We went in the right direction. Then the question was more a matter of fine adjustment of the cut cuts and where we land,” Wunsch said. “I was like, you know, inflation could be a boring part [20]25, i [20]25 is not a boring year. But if you add tariffs to the equation, it gets more complex, “he said.
Wunsch, who is also the governor of the National Bank of Belgium, said that the tariffs would be “bad for growth” and “probably” inflationary, but noted that the correct impact remains uncertain and will depend on potential retaliation and how the courses respond to duty.
His comments come the day after Trump announced 25% of tariffs on all cars “not made in the United States,” in force of April 2. In the post on Social Social, Trump also threatened to put a “far greater” tariff on the European Union and Canada on Thursday if they were working together in the US duties together
These are just the latest events in Trump’s trade policy, for which the announced Tariffs have been announced – and sometimes delayed, modified or abolished, as negotiations and opposing measures have been entered.
2. April was set up as a key date to enter into force of a wide range of duties, although the recent comments of Trump and its administration signaled that adjustments could be made and that duties could be milder than originally indicated.
Interest rate decisions in front of
The ECB will make its next decision on the interest rate of 17 April. Shortly after the tariffs were scheduled to come into force. The markets are the last prices in approximately 79% of the 25-based interest rate reduced from the ECB next month, according to LSEG data.
Until then, Wunsch said that the central bank could have a rough idea of the influence of tariffs, which could affect ECB decisions. However, he said that “he would not put too much focus on April,” because trade policy would have a medium -term influence.
On Thursday, the Central Banker left an open door for all possible actions from ECB related to interest rates – a further reduction, hiking or pause.
“I think the likelihood is still limited to have to walk, but there may be a break case,” he said.
“If the tariffs have an inflationary impact and a negative impact on growth, it will be a heavy equation and we may need to consider the break. We do not pray for one thing, but I think it should be part of the discussion,” he said.
