European Central Bank Warns Against Fresh Tariffs

LONDON (Reuters) – Fresh tariffs could harm global growth and trigger retaliatory measures leading to a trade war, warned European Central Bank Vice President Luis de Guindos following Donald Trump’s election victory, where he pledged to enforce new trade barriers.

"Tariffs, trade barriers, protectionism are detrimental to the global economy," de Guindos stated at a conference in London. "I hope the decisions taken do not lead to a trade war."

He added, "If you impose a tariff, it’s important to consider that the other party will react and retaliate, potentially creating a vicious circle of inflation and tariffs, which could be the worst outcome."