In Paris on Feb 3, French central bank governor Francois Villeroy de Galhau expressed concern over the economic implications of trade tariffs imposed by U.S. President Donald Trump. Villeroy noted, There are some rather positive elements in the economic news, such as a recovery of purchasing power, but Mr. Trump's decision to impose significant tariffs will heighten economic uncertainty. Villeroy, who also serves as a member of the European Central Bank (ECB), criticized Trump's tariffs as very brutal, particularly impacting the autos sector. He emphasized that a protectionist trade war is detrimental for all parties involved. When asked about a potential response from the European Union to U.S. tariffs, Villeroy suggested that while it should not be ruled out, caution is advisable, with the priority being to strengthen the European economy.

Villeroy highlighted the need for further rate cuts by the ECB and expressed expectations for such measures to be implemented. Recent developments have pointed towards a possible reduction in rates in March, as concerns about lackluster economic growth outweigh worries about persistent inflation.