ECB’s Villeroy: Trump Tariffs Unlikely to Significantly Alter European Disinflation

2 April 2025

ECB’s Villeroy: Trump Tariffs Unlikely to Significantly Alter European Disinflation
François Villeroy de Galhau, governor of the Banque de France, at the European Central Bank Governing Council meeting in Ljubljana on October 17, 2024. Photo by Andrej Hanžekovič/ECB.

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Wednesday said that US tariffs on Europe would probably not substantially affect the disinflation process in the euro area.

In an interview with French regional newspaper Midi Libre, Villeroy, who heads the Banque de France, said, ‘We also provide a strong anchor of stability: victory against inflation.’

‘ We are winning this battle, since in Europe, inflation has just fallen to 2.2%, very close to our 2% target’, he continued. ‘This should give us more confidence to lower our interest rates further in the near future. The Trump tariffs are unlikely to significantly alter this European disinflation. In France, inflation is even lower.’