The deputy head of the European Central Bank (ECB), Luis de Guindos, has warned of dangers to global trade following Donald Trump’s victory in the US presidential election. Tariff barriers are damaging the global economy, he said at a conference in London on Wednesday.
It is not yet known what direction the new administration in Washington will take. But it is hoped that decisions on tariffs will not lead to some kind of trade war, he said, deputizing for ECB boss Christine Lagarde.
“If you impose tariffs, you have to keep in mind that the other side will react and retaliate. This could create a vicious circle of inflation and tariffs, which could be the worst possible outcome and consequence,” De Guindos added. Trump threatened punitive tariffs during the election campaign.
Trump promoted punitive tariffs during the election campaign
During his first term, Trump started a trade war with China and advocated further measures during the election campaign: he wants to impose a punitive tariff of 60 percent on products from the People’s Republic and ten to twenty percent on products from Europe and all other countries. other parts of the world.
Source: Krone
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