ECB: Tariff war could derail global recovery

In its latest economic bulletin article, the European Central Bank (ECB) underscored the concerns over a tariff war on the global trade recovery going forward.

Key Highlights via Reuters:

Retaliation and a full-fledged trade war could increase import prices, raise production costs and eat into households’ purchasing power, negatively impacting consumption, investment and employment, 

“In response to higher uncertainty, financial investors could also reduce their exposure to equities, reduce credit supply and require a higher compensation for risk.”

“Heightened uncertainty could spill over more broadly, adding to volatility in global financial markets.”