By Marta Vilar – MADRID (Econostream) – European Central Bank President Christine Lagarde said on Wednesday that US tariffs would have a limited impact on inflation in the euro area, though this effect would be upward.

In an interview with French radio RTL on the sidelines of the World Economic Forum in Davos, Switzerland, Lagarde said that the effect of US tariffs in the short term was somewhat limited.

US President Donald Trump’s latest tariff threat would raise the average tariff rate for the Eurozone from around 12% to 15%, she said.

“We have an inflation that would be very slightly affected, probably to the upside, but as we have inflation under control at 1.9%, the impact would be minimal,” she said. “What is far more serious is the degree of uncertainty created by the constant reversals of President Trump.”

Export-oriented countries like Germany would be hit to a larger extent than others, she said.

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