Economic Uncertainty Escalates Amid U.S. Trade Tariffs

French Central Bank Governor Francois Villeroy de Galhau has criticized U.S. President Donald Trump's tariffs, highlighting the economic uncertainty they bring. He emphasized the negative impacts on the global economy and warned of potential retaliatory measures from the European Union. The ECB may introduce further rate cuts to boost growth.

French Central Bank Governor Francois Villeroy de Galhau has expressed concerns over the economic uncertainty prompted by trade tariffs imposed by U.S. President Donald Trump. Speaking on Monday, Villeroy labeled the tariffs as "very brutal," particularly affecting the autos sector.

Villeroy, also a European Central Bank member, warned that such protectionist measures could lead to a lose-lose scenario in global trade dynamics. He advised that while the European Union should not exclude responsive tariffs, caution is necessary to strengthen the economy instead.

Trump's new sweeping tariffs target goods from Mexico, Canada, and China, potentially sparking a trade war that threatens global economic stability. Villeroy also hinted at further eurozone interest rate cuts, following the ECB's recent decision, as growth concerns overshadow inflation issues.

(With inputs from agencies.)