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ECB · Tariffs · Trade Environment · Volatile Policy
Eurozone exporters are facing ongoing difficulties in securing overseas buyers, a situation attributed in part to the volatile policy environment in the U.S., according to European Central Bank President Christine Lagarde.
While the eurozone economy showed stronger-than-expected growth last year and is projected to be supported by household demand and investment in 2026, trade remains a challenge. Lagarde cited higher tariffs, a stronger euro, and persistent global policy volatility as key obstacles.
The article notes that U.S. tariffs, initially challenged in court, have evolved, with a temporary 10% duty on all trading partners. Despite previous tariffs, EU exports to the U.S. saw an increase last year, though much of this occurred early on as businesses built stocks.
Exports slowed later in the year as tariffs took effect and the euro strengthened. Lagarde's remarks suggest a potential revision of the ECB's March forecasts, which had anticipated a pickup in exports due to declining trade policy uncertainty.
Lagarde Warns: US Policy Volatility, Tariffs Challenge Eurozone Exports, Clouding Outlook(current)
