ECB Vice President Luis de Guindos acknowledged that US President Donald Trump’s tariff policies have made the central bank’s monetary policy decisions more challenging, creating an environment of increased uncertainty.
Speaking to Spanish radio Onda Cero, de Guindos noted that the “clarity regarding future decisions” has diminished in a situation “much more opaque than just six months ago.”
He also pushed back ECB’s inflation target timeline, stating that inflation is now expected to reach the 2% goal in Q1 2026, later than the previous mid-2025 projection, due to the impact of higher energy prices.
Despite these concerns, de Guindos remained cautiously optimistic that “everything is moving in the right direction.” While tariffs could lead to some short-term inflationary effects, he suggested that slower economic activity resulting from trade disruptions could ultimately offset these pressures over time.
