{"id":112982,"date":"2025-03-20T12:50:23","date_gmt":"2025-03-20T08:50:23","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=112982"},"modified":"2025-03-20T12:50:25","modified_gmt":"2025-03-20T08:50:25","slug":"lagarde-warns-of-economic-impact-from-u-s-eu-trade-war","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/lagarde-warns-of-economic-impact-from-u-s-eu-trade-war\/03\/20\/market-updates\/","title":{"rendered":"Lagarde Warns of Economic Impact from U.S.-EU Trade War"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p><strong>European Central Bank (ECB) President Christine Lagarde cautioned on Thursday that a full-scale trade war between the U.S. and the eurozone could significantly damage the European economy and drive inflation higher.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Key Points:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Economic Impact of U.S. Tariffs:<\/strong>\n<ul class=\"wp-block-list\">\n<li>A <strong>25% tariff on European imports<\/strong> imposed by the U.S. could <strong>reduce eurozone growth by 0.3 percentage points<\/strong> in the first year.<\/li>\n\n\n\n<li><strong>Retaliatory EU measures<\/strong> could deepen the impact, <strong>lowering growth by up to 0.5 percentage points<\/strong>.<\/li>\n\n\n\n<li>Lagarde emphasized that these estimates were subject to <strong>considerable uncertainty<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Inflation and ECB Response:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Trade disruptions and tariffs could <strong>drive inflation higher<\/strong>, requiring close monitoring.<\/li>\n\n\n\n<li>The ECB remains <strong>&#8220;vigilant&#8221;<\/strong> and is prepared to <strong>act to ensure price stability<\/strong>.<\/li>\n\n\n\n<li>Policy decisions will be taken <strong>on a meeting-by-meeting basis<\/strong>, with flexibility to adjust to new developments.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Call for Greater Trade Integration:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Lagarde <strong>advocated for deeper trade ties<\/strong> with other partners to <strong>counterbalance the negative effects<\/strong> of U.S. tariffs.<\/li>\n\n\n\n<li>The ECB sees <strong>trade diversification as a potential buffer<\/strong> against economic shocks from U.S. trade policies.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>With rising protectionism from the U.S., the eurozone faces heightened economic risks, making ECB policy decisions even more critical in the coming months.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>European Central Bank (ECB) President Christine Lagarde cautioned on Thursday that a full-scale trade war between the U.S. and the eurozone could significantly damage the European economy and drive inflation higher. Key Points: Economic Impact of U.S. Tariffs: A 25% tariff on European imports imposed by the U.S. could reduce eurozone growth by 0.3 percentage &hellip;<\/p>\n","protected":false},"author":9,"featured_media":44251,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[],"class_list":["post-112982","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/112982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=112982"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/112982\/revisions"}],"predecessor-version":[{"id":112983,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/112982\/revisions\/112983"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/44251"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=112982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=112982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=112982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}