The danger of a “negative shock of demand” due to the sweeping duties announced by US President Donald Trump warns, in an interview with the Financial Times, Greece’s central banker Yiannis Stournaras.

Mr Stournaras referred to potential impact on Europe’s economic growth as a result of the worldwide trade war, in the aftermath of the US duties imposed by the US. “A remarkable negative impact on growth could lead to greater than expected weakening of (economic) activity, Distinguishing inflation lower of our goals, “he explained.

Mr Stournaras warned that the eurozone is facing this shock at the time when the prospects of growth were already weak and inflation was moving towards his goal. 2% In the medium term, set by the European Central Bank. The ECB’s next decision on interest rates, which is related to inflation, is expected on April 17th.

Mr Stournaras estimated that “duties are certainly a deflationary measure” for the eurozone. He stressed that the US protective measures are “worse than expected” and that they create a “unparalleled degree of global uncertainty (policy), which is borne by economic activity.

Asked if the situation would justify interest rates by 50 basis points, Mr Stournaras refused to comment.

Although it remains difficult to “accurately predict the impact of duties”, their imposition “could reduce the growth of the eurozone from 0.5% to 1.0%”.

President Trump announced last week that Washington will impose a 20% duty on most European products imported to the US, which is the largest market for European products, with a total share of 21% of EU exports in 2024. Imposition of even higher duties on Chinese products Europe, a development that could mean even lower inflation level.

In view of the Trump Trust announcements last week, the ECB had referred to the possibility of suspension of interest rate reduction, after the sixth reduction by the mid -2024 level at 2.5%.

ECB President Christine Lagarde said in March that inflation could increase by 0.5% in the context of this trade war “due to EU retaliation and a weaker equality of the euro”.