U.S. President Donald Trump's trade tariffs will make the economy more uncertain, French central bank governor Francois Villeroy de Galhau stated Monday.


Villeroy told France Info that while there are some encouraging aspects to the economic news, such as a recovery in purchasing power, "the decision of Mr. Trump to impose strong tariffs will increase economic uncertainty," which is a very concerning development.

According to Villeroy, who is also an ECB member, Trump's tariffs are "very brutal" and will disproportionately affect the auto industry.

"Everybody loses in this kind of protectionist trade war," claimed the politician.

In response to a question about whether the European Union should retaliate in kind if Trump imposes tariffs on the EU, Villeroy stated that one option could not be disregarded but advised with care.

"The key is to make our economy stronger," said the president.

In an effort to curb the flow of fentanyl—and illegal immigrants in the case of Canada and Mexico—into the United States, Trump on Saturday imposed sweeping tariffs on commodities from China, Mexico, and Canada. This move could impede global growth and rekindle inflation.

Villeroy added that more rate cuts by the ECB are probably in the cards.

The European Central Bank lowered interest rates last week, and as concerns about slow economic growth take precedence over ongoing inflation, officials are guiding for a further decrease in March.