The trade agreement between Brussels and Washington has “mitigated” but “certainly not eliminated global uncertainty,” with tariffs “slightly higher” than what the ECB had forecast in June, said its president Christine Lagarde on August 20 in Geneva.
Paris (France) – A few weeks after Brussels and Washington agreed to impose 15% tariffs on European exports to the United States, “uncertainty persists as the tariffs specific to the pharmaceutical and semiconductor sectors remain unclear,” according to the President of the European Central Bank, who spoke at a meeting of the International Business Council of the World Economic Forum on August 20 in Geneva.
The agreement was reached a few days after the ECB’s monetary meeting, which chose to keep interest rates unchanged after a long cycle of cuts, a sign of caution in the midst of the trade standoff.
Published in mid-September, the new inflation and growth forecasts from the ECB will take into account “the consequences of the trade agreement,” Ms. Lagarde assured.
(August 20, 2025)
