Europe cuts interest rates as Trump's tariffs loom
Published: 6/5/2025

The European Central Bank (ECB) cuts interest rates due to the impact of Donald Trump's tariffs on the eurozone economy. The ECB reduced its key interest rate to 2% as uncertainty surrounding trade policies, particularly from the US, weighs on business investment and exports. Despite expectations of economic growth in the medium-term, ongoing trade tensions continue to pose a significant risk to the eurozone's economic stability.