ECB Vice President Guindos: Inflation faces huge shock if Trump implements tariff plan

Global growth and inflation could face a devastating shock if Donald Trump follows through on the level of import tariffs he threatened during the election campaign, ECB Vice-President Luis de Guindos said.Speaking at an event in London on Wednesday, Guindos said that economic output would weaken, price pressures would intensify and existing trade flows would be disrupted. The ECB will incorporate into its outlook any policies announced by the new U.S. administration before deciding how to respond.Guindos said policymakers will continue to be guided by the data and will pay particularly close attention to the bank lending survey to determine whether the financing environment is stimulative or restrictive. He said the forecasts scheduled for release next month would not differ much from those of September.