ECB Vice President Warns on US Trade War Risk

During remarks at the Trobada d’Economia in S’Agaró this Saturday, the vice president of the European Central Bank, Luis de Guindos, warned of the risk that political tensions in Washington could spill into a broader trade confrontation with the United States. He noted that tariff moves contemplated by the new U.S. administration might be less dangerous than the unpredictable reactions from partners that could follow. In Guindos’s view, a retaliatory spiral would threaten global demand, raise input costs for manufacturers, and chill investment across Europe and beyond. Such a cycle would slow the fragile global recovery and weigh on the livelihoods of households everywhere. He stressed the importance of calm, predictability, and constructive dialogue to avoid protectionist escalation that would hurt growth and jobs. The overarching message was clear: in a moment of fragile momentum, Europe must deepen ties with its trading partners while steadfastly protecting long‑term interests and the resilience of its economies.