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ECB board member Schnabel says 'sharp rise' in uncertainty could worsen
ECB's Schnabel said the eurozone economy could become more vulnerable due to US tariffs.
European Central Bank policymaker Isabel Schnabel said on Saturday that long-standing structural headwinds for the euro zone economy have been exacerbated by a surge in uncertainty and are likely to become more severe after the introduction of U.S. trade tariffs.
The ECB will closely monitor the impact of tariffs announced by U.S. President Donald Trump on Wednesday on euro zone growth and inflation in the coming weeks, Schnabel told an economic forum in northern Italy.
She said that currently, recent events have led to a sharp increase in uncertainty, but this may only be the beginning.
“Some people are thinking that Liberation Day (the name given to the tariffs Trump announced on Wednesday) might be the day when uncertainty peaks, but I’m not entirely sure that’s the case,” she said.
Schnabel, who sits on the ECB's executive board in Frankfurt, directly rejected Trump's claim that the EU was set up to "bully" the United States.
"Of course, the European Union was not created to suppress the United States, but to make Europe prosper," she said.
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