ECB President Christine Lagarde warned of the possible consequences of a trade war with the United States. The growth would be steamed, inflation warmed up. In response to Trump’s rates, the EU announced countermeasures to American goods from mid -April.
The US government had imposed rates on aluminum and steel imports of the EU. In the meantime, President Trump also threatened a customs of 200 percent on wines and other alcoholics, who would mainly affect France.
The European Union then announced a 50 percent customs on whiskey from the US. The countermeasures must apply from Mid -Urril. In the end there were many warning votes not to refer the trade conflict. The Italian head of the Giorgia Meloni government said, for example, that she was not sure whether a coat tasks and rates were a good approach to rates.
Now Christine Lagarde, president of the European Central Bank, has also warned. EU reference measures and a weaker Eurocursus bend inflation in the short term by about half a percentage point. In February the inflation percentage in the community of 20 countries was 2.3 percent, the goal of the ECB is a percentage of two percent.
No insulation
She hoped that the EU and the US would try to negotiate seriously, Lagarde said in Brussels on Thursday. A closer collaboration with the rest of the world would compensate “more than” losses by one -sided rates. “In such a scenario, only countries would lose a policy of insulation.”
“The majority of the effects on economic growth would focus on the first year after customs increased,” said Lagarde. Over time, the effects would start again.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
