MNI BRIEF: Weaker Euro Could Offset US Tariffs - ECB’s Guindos
MNI (LONDON) - The depreciation of the euro against the dollar since the US elections could have started to compensate for any hypothetical tariffs imposed on European goods by president-elect Donald Trump, European Central Bank Vice President Luis de Guindos said on Friday.
The first step of any new tariff is less important than the retaliation measures that could come, de Guindos said, adding that a trade war would be “extremely negative for the world economy” and for an impact on inflation. (see MNI SOURCES: ECB Heads For 25BP Cut; Risks From Trump, Germany )
Regarding Eurozone inflation data released Friday, de Guindos said headline HICP at 2.3% was in line with expectations, but there is an uncertainty element with services inflation (November Services at 3.9%, little changed from October).