Greek central bank governor Yannis Stournaras warned in an interview with the Financial Times on Monday that US President Donald Trump’s new tariff measures could slow euro area economic growth by between 0.5 and 1 percentage point.
His comments come as EU nations consider targeted countermeasures on up to $28 billion of US imports - from items like dental floss to diamonds.
The 27-member bloc currently faces a 25% tariff on steel, aluminum, and cars, along with “reciprocal” tariffs of 20% on nearly all other goods, effective from Wednesday. Stournaras cautioned that the emerging global trade war might trigger a significant “negative demand shock” in the eurozone, potentially weakening economic activity and pushing inflation below central bank targets.
He explained, “A notable adverse impact on growth could lead to activity being much weaker than expected, dragging inflation below our targets.” The European Central Bank has estimated that a blanket 25% US tariff on European imports would reduce eurozone growth by 0.3 percentage points in the first year, a figure that could rise to half a percentage point if the EU enacts its own counter-tariffs.
Stournaras described the tariffs as deflationary measures and noted that some of the US actions have been “worse than expected,” contributing to an “unprecedented” degree of global policy uncertainty. With the next ECB rate decision set for April 17 and eurozone inflation easing to 2.2% in March from 2.3% in February, there is growing speculation about further interest rate cuts.
Trade between the US and the EU remains robust, with 2024 figures showing US imports from the EU at 334 billion euros, compared to 532 billion euros in EU exports to the United States. On April 2, Trump announced a 10% baseline tariff on all US imports along with higher duties on goods from roughly 60 countries, intensifying the trade dispute.
Britain and Switzerland have signed an agreement to explore the creation of a direct rail connection between London and Switzerland, aiming to expand cross-border train travel beyond existing routes to Paris, Brussels, and Amsterdam.
Iranian Foreign Minister Abbas Araqchi will visit Saudi Arabia and Qatar on Saturday to attend the Iran-Arab World Dialogue summit in Doha, as preparations continue for a possible fourth round of U.S.-Iran nuclear talks in Oman over the weekend.
Armenia and Azerbaijan are now conducting direct peace talks without Russian mediation, according to Armenian Security Council Secretary Armen Grigoryan. He told Armenian media that Moscow’s mediating role has ended and that direct dialogue is now seen as more effective.
Armenian Prime Minister Nikol Pashinyan confidently announced that there will be no war between Armenia and Azerbaijan, emphasizing a shared commitment to a peaceful and prosperous future for the region.
Britain has imposed fresh sanctions on Russia, including asset freezes targeting directors of the oil trading firm Coral Energy Group, now known as 2Rivers Group.
India has fired a series of missiles into Pakistani-controlled territory, in what it has described as “Operation Sindoor”
For the first time in history, an American has been chosen to lead the Catholic Church, as Cardinal Robert Prevost is named pope.
Discover every major VE Day 80 event in Britain, 5‑8 May 2025—from London’s parade and fly‑past to street parties, concerts and museum exhibitions.
Chinese e-commerce platform Temu has announced it will no longer sell goods directly from China to U.S. customers, shifting instead to U.S.-based sellers amid the closure of a long-criticized customs loophole.
Cardinals from 70 nations have gathered in Vatican City to begin the historic conclave to elect the next pope, following the death of Pope Francis 17 days ago. This conclave is the most geographically diverse in Church history, showcasing Francis’ legacy of inclusivity.
Ukraine is exploring whether to replace the U.S. dollar with the euro as its reference currency, as Kyiv aligns more closely with the EU and global trade fractures deepen.
The U.S. Federal Reserve kept its benchmark federal funds rate unchanged on Wednesday, maintaining the target range at 4.25% to 4.50%, in a widely expected move as the central bank navigates a complex economic environment marked by slowing inflation, global trade tensions, and political pressure.
Ford is raising prices on three of its Mexico-made models starting May 2, becoming one of the first major automakers to react to U.S. President Donald Trump's steep auto tariffs, which are reshaping industry costs and consumer prices.
As European NATO countries rush to strengthen their armed forces, large pension bills threaten to divert funds from urgently needed military hardware.
The European Commission has presented a roadmap to ensure the EU fully ends its dependency on Russian energy, while ensuring stable energy supplies and prices across the EU.
Britain and Switzerland have signed an agreement to explore the creation of a direct rail connection between London and Switzerland, aiming to expand cross-border train travel beyond existing routes to Paris, Brussels, and Amsterdam.
Iranian Foreign Minister Abbas Araqchi will visit Saudi Arabia and Qatar on Saturday to attend the Iran-Arab World Dialogue summit in Doha, as preparations continue for a possible fourth round of U.S.-Iran nuclear talks in Oman over the weekend.
Armenia and Azerbaijan are now conducting direct peace talks without Russian mediation, according to Armenian Security Council Secretary Armen Grigoryan. He told Armenian media that Moscow’s mediating role has ended and that direct dialogue is now seen as more effective.
Armenian Prime Minister Nikol Pashinyan confidently announced that there will be no war between Armenia and Azerbaijan, emphasizing a shared commitment to a peaceful and prosperous future for the region.
Britain has imposed fresh sanctions on Russia, including asset freezes targeting directors of the oil trading firm Coral Energy Group, now known as 2Rivers Group.
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