EUROPE (Enmaeya News) - October 7, 2025

The euro area economy is proving more resilient than expected in the face of U.S. tariffs, European Central Bank President Christine Lagarde said Tuesday, according to AP News.

She attributed the region’s resilience to the EU’s decision not to retaliate with counter-tariffs, the stronger euro that eased import costs, and a U.S. trade deal that capped tariffs at 15%, reducing uncertainty.

Lagarde noted that inflation risks remain “quite contained” and confirmed that the ECB will keep interest rates steady at 2% for now.

However, she warned that policy could shift if new shocks or inflationary pressures arise.

The European Central Bank is watching the situation closely. If inflation goes up or new problems appear, it may change its policy. For now, things remain steady, but many will be watching what happens next.