European Central Bank President Christine Lagarde stated Thursday that the full effect of recent US trade tariffs on Eurozone inflation remains uncertain and will only be understood over time.

“The net impact on inflation will only become clear, or clearer... over the course of time,” Lagarde said during a press conference at the ECB headquarters. “There are diverging views... we have a lot of uncertainties still today.”

Lagarde’s remarks come as markets continue to assess the broader consequences of protectionist measures implemented by US President Donald Trump, which include tariffs affecting European exports. Analysts have expressed concern about potential ripple effects across global supply chains, with inflationary pressures in the Eurozone remaining a key concern for policymakers.

While the ECB monitors inflation trends closely as part of its policy mandate, Lagarde acknowledged the complexity of predicting outcomes in an increasingly volatile global trade environment.

Trump's tariffs sour relations with the EU

US President Donald Trump announced reciprocal tariffs on April 2, which he dubbed "Liberation Day", consisting of a base 10% tariff on all exports to the United States, and targeted levies on more than 180 countries: The European Union was hit with a 20% tariff.

On April 9, the European Union announced plans to impose tariffs on over $20 billion worth of US exports in retaliation against Trump's earlier 25% tariffs on metals imports, though it later reversed this decision after Trump backtracked and suspended all tariffs except those targeting China.

The European Union's retaliation to the newly imposed 20% tariff by the United States on the bloc may not be limited to reciprocal duties on American imports, French Economy Minister Eric Lombard said on April 11.

"We are working on a response package that could indeed go beyond customs duties to bring the Americans to the negotiating table and reach a balanced agreement..." Lombard told RMC Radio on April 11, adding that the EU's response can be firm without mirroring the US approach, as tariffs on imports from the US could harm the bloc.

The minister called on French companies to demonstrate solidarity and patriotism in the face of the US measures while stressing that Europe must stand its ground against global powers "because we are now in a period of confrontation against the planet’s major blocs: the US, Russia, and China. Europe has what it takes to rise to the occasion, but it requires effort."

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