The Deputy Governor of the European Central Bank on tariffs: Bad news for the world and everyone loses in this situation.

The Vice President of the European Central Bank, Luis de Guindos, stated on Monday that the trade war is bad news for the global economy, explaining that everyone loses in this situation.

The ECB official added that the administration of U.S. President Donald Trump has heightened economic uncertainty due to tariffs and deregulation. De Guindos also touched upon the following:

• The impact of tariffs on inflation can be offset by a decrease in economic activity.
• Members of the European Central Bank believe that the inflation rate is nearing the target of 2%; everything is moving in the right direction.
• There is a greater degree of uncertainty which makes the situation more ambiguous than it was 6 months ago.
• Spain will have to spend 2.7% of its GDP on defense over the next four years, increasing its budget by 6 billion euros annually.