U.S. President Donald Trump’s tariff measures may slow economic growth in the euro area by 0.5 to 1 percentage points, according to Greek central bank governor Yannis Stournaras. This statement was made in an interview published by the Financial Times on Monday.
The warning comes as European Union countries are preparing to approve a set of countermeasures targeting up to $28 billion worth of U.S. imports. These measures include tariffs on a range of products, from dental floss to diamonds. The EU currently faces 25% import tariffs on steel, aluminium, and cars, with a 20% tariff set to apply to nearly all other goods starting Wednesday.
Stournaras highlighted the potential for a significant “negative demand shock” within the Eurozone due to these trade tensions, which could slow economic activity more than expected and lead to lower inflation rates. The European Central Bank has estimated that a 25% tariff on European imports from the U.S. could reduce eurozone growth by 0.3 percentage points in the first year, with EU counter-tariffs potentially increasing this impact to 0.5 percentage points.
The governor also described the tariffs as a deflationary measure and expressed concern that some of the U.S. actions had created an unprecedented level of global policy uncertainty.
On April 2, President Trump introduced a 10% baseline tariff on all imports into the U.S. along with higher duties on a number of other countries, targeting approximately 60 nations.
In 2024, U.S. imports from the EU totaled 334 billion euros ($365.6 billion), while EU exports to the United States amounted to 532 billion euros.
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