Trump's tariffs push will hit the U.S. harder than Europe in the short term, Santander chair says

Core Viewpoint - The White House's protectionist policies, particularly tariffs, are expected to negatively impact the U.S. economy more than Europe in the short term, leading to slower growth and higher inflation [2][3][11]. Tariffs and Economic Impact - Tariffs are described as a tax on consumers, which will ultimately slow economic growth and increase inflation [2][11]. - The U.S. has imposed a 25% tariff on all car imports effective from April 2, which has prompted retaliatory measures from the European Union [4]. European Economic Resilience - European banks are positioned to lend more and support the economy, with calls for more flexibility in EU regulations to enhance resilience against financial shocks [6]. - The European economy is viewed optimistically, with Germany's significant role in the eurozone expected to provide a boost despite vulnerabilities in the auto sector due to U.S. tariffs [10]. Monetary Policy Considerations - The European Central Bank is anticipated to cut interest rates by 25 basis points in its next meeting, with recent monetary policy becoming less restrictive [11]. - The uncertainty caused by tariffs complicates decision-making for the ECB, affecting the pace and direction of monetary policy adjustments [12][13].