European Central Bank (ECB) policymaker Yannis Stournaras issued a warning on Monday, stating that the tariffs imposed by US President Donald Trump could trigger a significant demand shock for the euro area.
Speaking to the Financial Times, Stournaras expressed concern that the potential global trade war could severely impact Europe’s economic growth. He projected that the negative effects on euro-area growth could range between 0.5 and 1 percentage point.
Despite these concerns, the euro saw modest gains, with EUR/USD trading at 1.0967, up 0.11% on the day.
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