LONDON, April 7. /TASS/. US President Donald Trump’s sweeping tariffs risk triggering a large "negative demand shock" in the Eurozone, Greece’s central bank governor Yannis Stournaras said in an interview with the Financial Times (FT) newspaper.
The looming global trade war is likely to weigh heavily on Europe’s economic growth, he said. "A notable adverse impact on growth could lead to activity being much weaker than expected, dragging inflation below our targets," Stournaras said.
The euro area is facing the shock just when the outlook for growth was already "modest" and inflation was on track to meet the European Central Banks’s medium-term target of 2 per cent, according to the publication.
The US is the largest single export market for EU-made goods, accounting for close to 21 per cent of the bloc’s total exports in 2024, the paper noted.
On April 2, US President Donald Trump announced the implementation of tariffs on products from 185 countries and territories. No new tariffs were announced for Russia. Universal tariffs amounting to 10% came into force on April 5, while individual ones will enter force on April 9. Moreover, the US administration imposed customs tariffs in the amount of 25% on all imported cars starting April 3. Trump also declared a state of emergency in the country over the economic situation.