Economist Isabel Schnabel, member of the Executive Committee of the European Central Bank (ECB), warned of a “very possible” trade conflict with the United States on the eve of Donald Trump’s inauguration as the 47th American president.
“It is very likely that there will be a trade conflict,” said Schnabel in an interview with the website specialized in economic affairs ‘Finanztip’ published this Sunday, collected by EFE, alluding to the “prominent role” that tariffs have played in the victorious Trump’s election campaign.
For Schnabel, the current economic uncertainty is “poison for the economy” and the application of tariffs by the new US administration “will cause an increase in import prices.”
Faced with a possible rise in inflation, although the situation of “very high inflation in recent years was very difficult for many people,” the economist regretted that they would have to wait a “long time” for the ECB’s decisions.
But now that the rise in prices has normalized, this shows that the European body will do “everything possible to lower inflation again.”
Eurozone inflation rose two tenths in December of last year, to an interannual rate of 2.4%, according to data published this Friday by the community statistics office Eurostat.
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