European stocks fall due to Trump's tariff announcement

European stock markets fell sharply after U.S. President Donald Trump announced new tariffs. This decision raises concerns about the impact on the economy and inflation. Fabio Panetta, a key European Central Bank official, indicated that reducing interest rates further may no longer be under consideration. The uncertainty surrounding U.S. trade policies creates challenges for the Eurozone. Panetta stressed the need for caution regarding interest rate reductions, given the potential economic weakness. He highlighted that monetary policy alone cannot address the trade issues effectively. The European Union is encouraged to respond strategically to the tariffs. Measures should be coordinated with economic policy and finance to mitigate long-term impacts. The goal is to avoid simply reacting to U.S. policies but to create a robust international trade strategy. The Bank of Italy reported a negative fiscal result partly due to monetary policy operations. Panetta's upcoming analysis will further address the challenges of this unprecedented phase in global trade. Addressing these issues requires not only immediate responses but also long-term strategies from the EU.