The trade tariffs imposed by US President Donald Trump have prompted responses from G7 central banks. The European Central Bank (ECB) and the Bank of Canada are planning to cut interest rates and reassess their economic strategies.
European Central Bank's Response
The ECB is expected to lower rates on Thursday, responding to price stability risks and emerging economic challenges. ECB President Christine Lagarde noted that the bank has tools to manage emerging threats.
Economic Measures in the US
Chair Jerome Powell is scheduled to speak Wednesday before the Economic Club of Chicago. Investors are closely watching for signs the Fed may pivot to rate cuts as inflation eases, alongside retail sales data expected to show a 1.4% monthly gain.
Actions by China and Other Countries
China responded to Trump's tariffs by imposing 125% tariffs on all US goods. Economic indicators for the first quarter are anticipated to show a slowdown in China. Additionally, other countries like Singapore and South Korea are expected to change monetary policies.
US trade policies under Trump significantly impact economic strategies in other nations. G7 central banks continue to adapt their decisions in response to these new challenges.
