Europe Weekly: EU still “in for tariffs”, ECB set for another rate cut

Though President Trump reserved his main tariff threats for others this week, he still complained about the EU’s trade surplus with the US and suggested the bloc is “in for tariffs”. We think US tariffs are indeed on the horizon but that they will subtract less than 0.2% from euro-zone GDP.  Otherwise, comments by ECB policymakers this week suggest that another 25bp cut next week is almost a done deal.

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