European Central Bank (ECB) member Francois Villeroy de Galhau expressed concerns on Tuesday about the negative impact of US President Donald Trump’s trade policies, warning that they not only dampen global economic growth but also pose a threat to financial stability, including within the United States itself.
In remarks reported by Bloomberg, Villeroy stated that Trump’s trade actions have placed the world into a “lose-lose game,” driven by flawed economic arguments. He emphasized that the escalating trade tensions could lead to further economic slowdown, with repercussions extending beyond the US.
Villeroy called for a de-escalation of the trade conflict, stressing the importance of avoiding a spiral of rising tariffs. He urged for a truthful assessment of the damage caused by the ongoing trade war and advocated for reopening dialogue to explore potential solutions.
The market reacted to Villeroy’s comments with a decline in the EUR/USD pair, which was down 0.30% at 1.0386 at the time of the report.
Related Topics:
