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ECB's Nagel Calls for 'steady Hand' Amid Tariff Turmoil
Published by Global Banking & Finance Review®
Posted on July 16, 2025
1 min readLast updated: January 22, 2026
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ECB's Joachim Nagel stresses the need for steady monetary policy amid uncertainties from Trump's tariff threats, impacting EU trade and interest rates.
ECB's Nagel calls for 'steady hand' amid tariff turmoil
BERLIN (Reuters) -European Central Bank policymaker Joachim Nagel said that a "steady hand" was required to deal with the uncertainty unleashed by U.S. President Donald Trump's latest tariff threat, in comments to business daily Handelsblatt.
In terms of monetary policy, "politics with a steady hand" is currently required, Nagel said in the interview, which the German newspaper published late on Tuesday.
The effect on prices of both the geopolitical environment and the trade conflict with the United States was "extremely uncertain", he added.
The ECB signalled after its June meeting that it was likely to keep interest rates unchanged when it meets again next week.
Five ECB policymakers told Reuters that Trump's threatened 30% tariff on EU imports is complicating the central bank's decision-making but is unlikely to derail that plan.
(Reporting by Rachel More, editing by Thomas Seythal)
Key Takeaways
- •Joachim Nagel calls for steady monetary policy amid tariff threats.
- •Trump's tariff threat creates uncertainty for the ECB.
- •ECB likely to keep interest rates unchanged next week.
- •Geopolitical environment impacts price stability.
- •Trade conflict with the US complicates ECB decisions.
Frequently Asked Questions about ECB's Nagel calls for 'steady hand' amid tariff turmoil
1What did ECB's Nagel say about the current economic situation?
Nagel emphasized the need for a 'steady hand' to manage the uncertainty caused by tariff threats from the U.S.
2How is the trade conflict affecting the ECB's decisions?
The threatened 30% tariff on EU imports complicates the ECB's decision-making but is not expected to derail their plans.
3What is the ECB's stance on interest rates?
The ECB indicated it is likely to keep interest rates unchanged in their upcoming meeting.
4What did Nagel mention about the effect of geopolitical factors?
He noted that the impact of the geopolitical environment and trade conflict on prices is 'extremely uncertain.'
5When was the interview with Nagel published?
The interview was published late on Tuesday, following the ECB's June meeting.
