The European Central Bank (ECB) said in its Economic Bulletin that risks to global growth are increasing as protectionist risks and threat of tariff increases rise in a consistent assessment of its view in its policy statement in July that the downside risks to the global economy have intensified measures and threats to increase tariffs by the United States and by the affected countries.
The European Central Bank added that if the bulk of the threatened measures were implemented, the average US tariff rate would rise to levels not seen in the past 50 years. it also pointed out that even with increased external risk, domestic growth appears to be strong in the euro area.
