MNI BRIEF: U.S. Tariffs Higher Than ECB Expected –De Guindos

U.S. tariffs have been higher than the European Central Bank and markets expected, ECB Vice President Luis de Guindos said on Tuesday, adding that markets seem more worried about a potential second round of levies that would trigger a wider trade war than the consequences of the first package.

The recent flight from equities and bonds was not accompanied by the dollar strength usually seen at times of risk aversion, though markets always remained liquid, without signs of panic, he said, adding, “We look at this very closely.” (See MNI INTERVIEW: Tariff Shock A Challenge To ECB's QT - Reichlin)