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On August 20, European Central Bank (ECB) President Christine Lagarde revealed that the Eurozone economy is anticipated to decelerate during this quarter. Although the recently concluded trade agreement with the United States has mitigated some uncertainty, the global trade outlook remains volatile. She emphasized that the current 15% tariff imposed on most European goods, while slightly higher than the central bank's June forecast, is still significantly lower than the worst-case scenario envisioned. Lagarde highlighted that while the recent trade agreement has provided some relief from global uncertainty, unpredictability within the policy environment persists, particularly concerning tariffs on pharmaceuticals and the semiconductor industry, which remain unresolved.
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