more to come European Central Bank Governing Council member and head of Germany's Bundesbank Joachim Nagel
said there has been progress in resolving the U.S.-EU tariff dispute, but more hurdles remain.
Speaking from the G7 meeting in Banff, Canada, Nagel noted a better mutual understanding is developing between the U.S. and Europe.
He stressed that both sides now recognize trade conflicts have no winners.
Nagel is “a little more confident” than he was days earlier, suggesting improved dialogue with the U.S.
The German Council of Economic Experts cut its growth forecast for Germany, citing the negative impact of tariff uncertainty.
Nagel expects German Q1 growth might surprise on the upside, but warns of deterioration in Q2 as tariff effects bite.
He sees potential for German growth to return to 1% or more by 2026, depending on the speed of fiscal policy rollout.
In a separate interview, Nagel described U.S. Treasury Secretary Scott Bessent as “constructive.”
He rejected any notion of a G7 split over U.S. policy, affirming: “It’s a G7.”
