Tariff threat complicates ECB’s July decision but won’t derail pause to rate cuts, sources say

U.S. President Donald Trump’s threatened 30% tariff on European Union imports is complicating the European Central Bank’s decision-making but is unlikely to derail plans for a pause in rate cuts next week, five ECB policymakers told Reuters.

Why it matters

The ECB signalled after its June meeting that it was likely to keep interest rates unchanged on July 23-24.

But the 30% duty floated by Trump is steeper than the ECB had anticipated even under the most negative of three scenarios for the euro zone economy it released last month