The European Central Bank cut its main interest rate by a quarter point on Thursday, citing rising trade tensions following U.S. President Donald Trump’s sweeping tariff campaign. The decision brings the rate down to 2.25 percent, marking the ECB’s seventh cut in the past year.
In a statement, the bank said eurozone economies had built some resilience against global shocks, but the outlook for growth had worsened. Trade friction, it said, was now a defining risk.
ECB President Christine Lagarde told reporters the effects were already visible. Business investment was slowing, she said, and consumers were growing cautious. “Disruptions to international commerce, financial market tensions and geopolitical uncertainty are weighing on business investment,” Lagarde said. “As consumers become more cautious about the future, they may pull back on spending.”
Trump’s tariff policy, announced on April 2, has sparked a broader trade war with retaliatory threats from Europe and Asia. Economists warn the fallout may ripple through global supply chains.
Yael Selfin, chief economist at KPMG, said trade disruptions could lead to a glut of manufactured goods and potential deflation. “The outfall of the trade disruptions could create a global glut of manufactured goods,” she said. “That could push prices into deflationary territory this year.”
While the ECB has moved to protect the eurozone economy, the U.S. Federal Reserve has taken a different approach. At its most recent policy meeting in March, the Fed held interest rates steady. Chair Jerome Powell signalled that uncertainty from Trump’s tariffs may keep rates unchanged for the foreseeable future.
Speaking in Chicago on Wednesday, Powell offered his strongest remarks yet. “These are very fundamental policy changes,” he said, warning that the tariffs could drag on growth.
Trump reacted swiftly. On social media, he criticised Powell’s decision to hold rates and called the Fed’s latest report a “complete mess.” He added, “Powell’s termination cannot come fast enough.”
Lagarde responded with calm defiance. “I have a lot of respect for my esteemed colleague and friend Jay Powell,” she said at her press conference. She also underscored the ECB’s independence, warning against political interference in monetary policy.
“For us, here, the independence of central banks is fundamental,” Lagarde said. “Any country that wants to join the eurozone must prove it can uphold that independence in law and in practice.”
European gas prices rose modestly on April 15, with the benchmark TTF index climbing 0.5% amid ongoing market adjustments, according to data from the London ICE exchange.
Europe experienced its most extensive flooding since 2013 last year, with 30% of the continent’s river network impacted by severe floods, according to a joint report by the Copernicus Climate Change Service and the World Meteorological Organization.
Authorities in Central Europe are racing to contain an outbreak of foot-and-mouth disease, prompting border closures and mass culling.
To facilitate Ukraine's access to global markets by ensuring smoother transit through EU countries, the EU and Ukraine have extended their Road Transport Agreement until December 31, 2025.
Georgian Parliament Speaker Shalva Papuashvili said Georgia will not take part in the Parliamentary Assembly of the Council of Europe (PACE) unless the country's sovereignty is fully respected.
A magnitude 5.8 earthquake struck the border area between Afghanistan and Tajikistan on Saturday, according to the German Research Centre for Geosciences (GFZ). The earthquake occurred at a depth of 92 kilometers (57 miles).
Japan is contemplating offering concessions in the form of increased soybean and rice imports as part of ongoing trade negotiations with the United States, according to a report by the Yomiuri daily on Saturday.
Mexico's Health Ministry confirmed the country's first human case of myiasis caused by screwworm, a parasitic infection, the government reported on Friday. The case was detected in a 77-year-old woman from Acacoyagua, a municipality in the southern state of Chiapas.
U.S. President Donald Trump and Secretary of State Marco Rubio have stated that the United States will abandon efforts to broker a peace deal between Russia and Ukraine unless significant progress is made in the coming days.
Start your day informed with AnewZ Morning Brief: here are the top news stories for April 19th, covering the latest developments you need to know.
The Russian ruble has emerged as the top-performing currency globally in 2025, registering an impressive 38% appreciation against the US dollar since the beginning of the year, according to a report by Bloomberg.
A small plane crashed near Kopake, New York, on April 13, killing at 6 people. The Mitsubishi MU-2B aircraft, carrying six people, went down under unclear circumstances. This marks the second aviation accident in New York in a week, raising safety concerns.
Several regions in Ukraine faced heightened alert on Palm Sunday, as reports of explosions and missile threats drew public attention and official responses.
Severe rainfall on April 17 led to flooding and landslides in the Piedmont region, prompting a large-scale emergency response from over 400 firefighters.
Start your day informed with AnewZ Morning Brief: here are the top news stories for April 16th, covering the latest developments you need to know.
The Russian rouble surged past 81 to the U.S. dollar on Thursday, marking a 40% increase since the beginning of 2025.
In response to President Donald Trump's sweeping new tariffs, a number of global companies are eyeing expansion into the United States to minimize the economic fallout from the trade measures.
Google plans to appeal parts of a recent U.S. court ruling that found it had unlawfully maintained monopoly power in parts of the online ad market, specifically in publisher ad servers and ad exchanges, while the court dismissed other antitrust claims.
Nvidia will take a $5.5 billion charge after the U.S. restricted exports of its H20 AI chip to China, citing security concerns. The move targets China's access to advanced tech, impacting Nvidia's key market amid growing global AI competition.
China is tightening regulations on battery-powered vehicles and will require its automakers to comply with higher battery safety standards, aiming to reduce risks of fire and explosions in the fast-growing sector.
A magnitude 5.8 earthquake struck the border area between Afghanistan and Tajikistan on Saturday, according to the German Research Centre for Geosciences (GFZ). The earthquake occurred at a depth of 92 kilometers (57 miles).
Japan is contemplating offering concessions in the form of increased soybean and rice imports as part of ongoing trade negotiations with the United States, according to a report by the Yomiuri daily on Saturday.
Mexico's Health Ministry confirmed the country's first human case of myiasis caused by screwworm, a parasitic infection, the government reported on Friday. The case was detected in a 77-year-old woman from Acacoyagua, a municipality in the southern state of Chiapas.
U.S. President Donald Trump and Secretary of State Marco Rubio have stated that the United States will abandon efforts to broker a peace deal between Russia and Ukraine unless significant progress is made in the coming days.
Start your day informed with AnewZ Morning Brief: here are the top news stories for April 19th, covering the latest developments you need to know.
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