ING: Tariffs May Force European Central Bank to Cut Interest Rates in April

Jin10 data reported on April 3rd that ING stated that under Trump’s global tariff plan, all export goods from the EU to the US will face tariffs of at least 20%. Although some policymakers at the European Central Bank have recently suggested that a pause in interest rate cuts may be needed due to ongoing inflationary pressures, ING pointed out that tariffs have brought severe trade and confidence shocks, and the likelihood of stopping the tariffs through quick and effective negotiations is minimal. The bank’s economists noted: “The likelihood that the European Central Bank will further push the policy interest rate into the neutral range within two weeks has significantly increased.”