The European Central Bank maintained its benchmark interest rate at 2%, as uncertainty over the US’ tariff plans prompted policymakers to halt their yearlong rate-cutting campaign.
An EU spokesperson said Thursday that a trade deal with the US is now “within reach” after weeks of tense talks, during which US President Donald Trump threatened 30% baseline tariffs on EU exports to the US, and the bloc prepared retaliatory tariffs on $84 billion worth of US imports if a deal is not struck.
The agreement will likely include a 15% tariff on European imports, sources told the Financial Times, but concerns remain that an unfavorable tariff rate could push the EU into a period of stagnating growth and inflation.
AD