- A 25% increase in US tariffs in Q2 would have limited impact on euro area inflation
- But it could reduce GDP by 0.3% over the course of the full year
- Trump is destabilising the multi-lateral system
- That increases risks for financial order and also the climate
- Trump's strategy is "lose-lose" in the short-term as it also harms the US economy
We'll see how much they would want to shrug it off once we move past the 2 April deadline next week. For now, next month's policy meeting is still up in the air for the ECB.
