ECB official: The tariffs imposed by Trump have affected the US more than other countries

Fabio Panetta, the governor of the Bank of Italy and a member of the ECB council, stated that the US economy has borne the brunt of the tariffs imposed by President Donald Trump. According to estimates, foreign exporters have only borne 10% of this burden, while American consumers have ended up bearing about half of the costs. The tariffs have contributed over half a percentage point to inflation in the US, which remains above the target set by the Federal Reserve.

Panetta highlighted the reconfiguration of trade flows, with a decrease in imports from China and an increase in those from Mexico, Vietnam, and Taiwan. He also emphasized global interdependence, noting that the US needs Europe, which represents a significant portion of American exports. Regarding the eurozone, Panetta stressed the need for more complete economic integration and proposed the introduction of European sovereign bonds to support the financing of public goods.

He mentioned the risks of inflation and underscored the importance of a flexible monetary policy. Recently, the Supreme Court struck down most of the tariffs imposed by Trump, prompting a reaction from him, who imposed a global tariff of 10% and promised further investigations to adopt new tariffs.