European Central Bank (ECB) Vice President Luis de Guindos warned Friday that escalating trade tensions, particularly new US tariffs, could negatively impact the global and European economies.
Speaking about the economic outlook, De Guindos stressed that a trade war would be "very negative" for growth, adding that protectionist policies from the new US administration could affect banking and fiscal policies.
He also highlighted the unprecedented level of uncertainty facing the eurozone, which he described as the highest since the pandemic. Weakened consumer confidence and sluggish growth further complicate recovery prospects.
