European Central Bank (ECB) Vice-President Luis de Guindos estimated on Thursday that United States President Donald Trump's tariffs on certain goods from the European Union, notably automobiles, will have the main impact on the bloc's economic growth and only influence inflation in the short-term.
Speaking at the Institute of International Finance's (IIF) event in Brussels, de Guindos noted that for expanding the gross domestic product (GDP), a trade war would be "extremely detrimental." He urged the ECB to be "very prudent" with its policy.
Previously, de Guindos warned that "everyone would lose" in a trade war between the EU and the US as it would leave a "very negative" mark on European and global economies.
