Connect with us

Business

European consumers will have to cope with a ‘notable adverse impact’ on growth from tariffs, Greece’s central bank governor warns

Published

on



U.S. tariffs have become Europe’s biggest headache as the consequences of a brewing trade war promise to hurt the region’s faltering economy. 

Beyond making European goods such as wine, cheese, and cars more expensive in America, the resulting trade tensions will also indirectly impact European consumers. 

For one, it will impede demand in the Eurozone as the bloc considers whether it should continue cutting interest rates later this month. The region’s growth remained positive but slow at the end of 2024, with inflation just starting to approach the European Central Bank’s 2% benchmark. With it, factors like consumer confidence have also begun to find solid ground. 

But Greece’s central bank governor pointed out tariffs could shake up much of that progress. It could, in fact, drive prices sharply down and cause a “negative demand shock.”

“A notable adverse impact on growth could lead to activity being much weaker than expected, dragging inflation below our targets,” Yannis Stournaras told the Financial Times.  

While the apparent impact of the tariffs is they make European goods more expensive for Americans, Stournaras, who was previously a finance minister, is worried that Europe will become a dumping ground for cheap Chinese goods since the U.S. market will be less enticing. 

Last year, the EU imposed anti-dumping charges against China’s electric vehicles in a bid to control cheap Chinese-made goods from flooding European markets. China responded with tariffs on European pork as the bloc continues to probe other industries for similar practices. 

Stournaras echoed EU Commission President Ursula von der Leyen’s sentiments following the tariff announcement. In a televised interview on Thursday, she said the EU will “be watching closely what indirect effects these tariffs could have because we cannot absorb global overcapacity, nor will we accept dumping on our market.”

Unlimited uncertainty

Trump’s tariffs vary by country (based on a rather simplistic formula), with the U.K. subject to 10%, Switzerland facing 31%, and China facing an additional 34% on top of past levies. The European Union, broadly, faces a 20% tariff on imports to the U.S.. This policy shift marks a seminal moment in Trump’s presidency and the U.S.’s trade relationship with much of the world.

“Such a high tariff is too large to be fully absorbed by consumers or producers. The hit to sentiment could be greater than previously seemed likely,” Andrew Kenningham, chief economist at Capital Economics, wrote in a note last week. 

While economies come to grips with the best course of action, the uncertainty they face may only be the start of what lies ahead. 

“Some people had the view that ‘Liberation Day’ could be the day of peak uncertainty, but I’m not entirely sure that is the case,” ECB policymaker Isabel Schnabel told Reuters

The EU has said it’s working on countermeasures following Trump’s litany of tariffs if its diplomatic efforts fail. One possible route is to go after American tech giants responsible for Europe’s €109 billion trade deficit in services with the U.S. 

Others aren’t sure that’s the best approach. For instance, Belgium’s Prime Minister Bart De Wever has bashed tariffs as “wealth-destroying protectionist madness” and advocated against retaliating similarly.  

But if the bloc pursues that path, the trade war’s growth will become hard to tame as it’ll turn the biggest companies on both sides of the pond into casualties. The EU has also previously floated the idea of a digital services tax but never had unanimity among its 27 members.

Euro Stoxx 50, the region’s blue-chip stock index comprising 50 stocks from eight Eurozone countries, has slipped 11.5% in the last five days. 

The ECB is set to announce its next interest rate decision on Apr. 17. 

This story was originally featured on Fortune.com



Source link

Continue Reading

Business

Cutting complexity might be the new leadership superpower

Published

on

Today’s most effective leaders aren’t just strategists or visionaries; they’re simplifiers. These executives can cut through bureaucracy, strip away bloat, and prioritize speed and agility over sprawling hierarchies and tangled workflows.

As companies scale, they inevitably accumulate more processes, meetings, metrics, policies, and platforms, writes Fortune’s Lily Mae Lazarus. Each addition may be well-intentioned, but over time, the layers calcify, slowing decision-making and suffocating innovation. The cost isn’t just cultural; it’s financial. Bain & Company estimates that excessive complexity erodes more than 15% of large companies’ profits each year.

Enter the simplifier-in-chief. These leaders are clear-eyed about the hidden toll of complexity and are unafraid to challenge entrenched ways of working. They focus on prioritizing what matters, eliminating friction, and empowering their teams to move faster and smarter. They also know that in today’s market, velocity is a competitive advantage—and that too much process often creates the illusion of control while actually stalling progress.

Several CEOs appear to agree.

—Amazon’s Andy Jassy has stressed the need to eliminate internal drag that slows innovation. 
—GM’s Mary Barra has long championed cutting red tape to accelerate product cycles.
—Bayer’s Bill Anderson is slashing 99% of corporate rules and flattening management through his “dynamic shared ownership” model. 
—JPMorgan Chase CEO Jamie Dimon put it bluntly: “Bureaucracy and BS kill companies.”

The shift toward simplification isn’t just about efficiency, though. It’s about resilience, writes Lazarus. When the environment shifts—as it inevitably does—simplified organizations can adapt faster and cultivate cultures that are more responsive, creative, and aligned around shared goals.

Ruth Umoh
ruth.umoh@fortune.com

Today’s newsletter was curated by Lily Mae Lazarus.

This story was originally featured on Fortune.com



Source link

Continue Reading

Business

Trump administration still won’t say whether it will return Maryland man mistakenly deported to El Salvador, despite Supreme Court ruling

Published

on

The Trump administration is doubling down on its decision not to tell a federal court whether it has any plans to repatriate a Maryland man who was mistakenly deported last month and remains confined in a notorious prison in El Salvador, despite a Supreme Court ruling and lower court order that the man should be returned to the United States. The U.S. district court judge handling the case of Kilmar Abrego Garcia now is weighing whether to grant a request from the man’s legal team to compel the government to explain why it should not be held in contempt. Any move toward a contempt finding would represent an extraordinary turn in the Trump administration’s assertion of presidential authority, both generally and specifically over immigration policy.

The government’s latest daily status update, filed Sunday as required by Judge Paula Xinis, states essentially that the Trump administration has nothing to add beyond its Saturday statement that, for the first time, confirmed that Abrego Garcia, 29, was alive and remained in an El Salvador prison under the control of that country’s government. That means for the second consecutive day, the administration has not addressed Xinis’ demands that the administration detail what steps it was taking to return Abrego Garcia to the United States.

The U.S. Supreme Court ruled last Thursday that the Trump administration must bring him back. Xinis followed that with an order Friday requiring the administration to disclose Abrego Garcia’s “current physical location and custodial status” and “what steps, if any, Defendants have taken (and) will take, and when, to facilitate” his return.

The Trump administration has asserted that Abrego Garcia, who lived in the U.S. for about 14 years before being deported, is a member of the MS-13 gang. Abrego Garcia has disputed that claim, and he has never been charged with any crime related to such activity. The Trump administration has called his deportation a mistake but also has argued, essentially, that its conclusion about Abrego Garcia’s affiliation makes him ineligible for protection from the courts.

Abrego Garcia’s location was first confirmed to the court by Michael G. Kozak, who identified himself in the Saturday filing as a “Senior Bureau Official” in the State Department’s Bureau of Western Hemisphere Affairs. Sunday’s status update was signed by Evan C. Katz, who was identified in the filing as assistant director of Enforcement and Removal Operations for the U.S. Immigration and Customs Enforcement agency within the Department of Homeland Security.

Separately, Abrego Garcia’s lawyers have asked Xinis to issue an order compelling the government to explain to the court why it should not be held in contempt for failing to comply fully with previous orders. As of early Sunday evening, Xinis had not filed such an order.

Abrego Garcia’s lawyers also have asked Xinis to order the government, among other things, to produce documents and contracts that detail the U.S. agreement with El Salvador to house people deported from the U.S. or, in absence of such records, to require that government officials testify in court about the arrangement.

Xinis expressed frustration Friday during a hearing in her Maryland courtroom when a U.S. government attorney struggled to provide any information about Abrego Garcia’s whereabouts.

“Where is he and under whose authority?” the judge asked during the hearing. “I’m not asking for state secrets. All I know is that he’s not here. The government was prohibited from sending him to El Salvador, and now I’m asking a very simple question: Where is he?”

The judge repeatedly asked a government attorney about what has been done to return Abrego Garcia, asking pointedly: “Have they done anything?”

Drew Ensign, a deputy assistant attorney general, told Xinis that he had no personal knowledge about any actions or plans to return Abrego Garcia. But he told the judge the government was “actively considering what could be done” and said that Abrego Garcia’s case involved three Cabinet agencies and significant coordination.

Kozak’s statement a day later stated: “It is my understanding based on official reporting from our Embassy in San Salvador that Abrego Garcia is currently being held in the Terrorism Confinement Center in El Salvador. He is alive and secure in that facility. He is detained pursuant to the sovereign, domestic authority of El Salvador.”

The Justice Department has not responded to an Associated Press request for comment.

During his time in the U.S., Abrego Garcia worked construction, got married and was raising three children with disabilities, according to court records.

A U.S. immigration judge initially shielded Abrego Garcia from deportation to El Salvador because he likely faced persecution there by local gangs that terrorized his family. The Trump administration deported him there last month anyway, before describing the mistake as “an administrative error” but standing by its claims that he was in MS-13.

This story was originally featured on Fortune.com



Source link

Continue Reading

Business

The tariff chaos is a golden opportunity for CEOs to give up their bad habit of offering earnings guidance

Published

on

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.



Source link

Continue Reading

Trending

Copyright © Miami Select.