ECB Chief: "Trump's Additional Tariffs Will Have Little Impact on Prices"

The European Central Bank (ECB) has projected that even if U.S. President Donald Trump raises tariffs on eight European countries, the impact on prices will be minimal.

ECB President Christine Lagarde said in a media interview on January 21 (local time), "Inflation may be affected very slightly, possibly on the upside, but since it is currently controlled at 1.9%, the impact will be extremely limited." President Lagarde predicted that, due to President Trump's threat of additional tariffs, the average tariff rate in the eurozone would rise from 12% to 15%.

European Union (EU) member states are currently subject to a 15% tariff rate under the trade agreement signed last year between the EU and the United States. The EU is exempt from tariffs on aircraft, aircraft parts, and certain pharmaceuticals, so the average tariff rate is lower than 15%.

Fran?ois Villeroy de Galhau, Governor of the Bank of France, also told Bloomberg News that the tariffs currently in place are not having a significant impact on eurozone prices. He stated, "The direct impact on inflation may be limited, but a stronger euro could emerge. This would act in the opposite direction to price increases."

Previously, President Trump decided to impose an additional 10% tariff starting next month on eight European countries that opposed the merger of Greenland, a Danish territory. Among these eight countries, France, Germany, Finland, and the Netherlands are part of the eurozone.