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Trade row has ECB's Draghi worried over state of global relations

AFP  |  Frankfurt Am Main 

raised concerns today about the state of international relations after US sparked fears of a trade war with his threat to impose punitive tariffs on and aluminium imports.

"There is a certain worry or concern about the state of international relations, because if you put tariffs against what are your allies, one wonders who the enemies are," said

"We are convinced that disputes should be discussed and resolved in a multilateral framework," he said, warning that "unilateral decisions are dangerous".

Trump's impromptu announcement last week that he intended to slap 25 percent taxes on imports and 10 percent on aluminium revived the spectre of a trade war between the and major trade allies like or the


fired a warning Wednesday, saying that it was preparing to retaliate with targeted tariffs on a slew of products from to denim to peanut butter.

cautioned that the "rising protectionism" could harm growth in the eurozone.

"Downside risks relate primarily to global factors including rising protectionism and developments in foreign exchange and other financial markets," told reporters after an ECB governing council meeting in

also unveiled the bank's latest growth and inflation projections.

He said the ECB had lifted its 2018 growth forecast for the eurozone from 2.3 to 2.4 percent, underscoring a bright outlook despite the political risks on the horizon.

The kept its growth forecasts steady for 2019 and 2020, at 1.9 and 1.7 percent respectively.

Its inflation projections were also unchanged for 2018 at 1.4 percent, but slightly lowered for 2019 from 1.5 to 1.4 percent.

The still expects inflation to hit 1.7 percent in 2020 -- inching closer to the ECB's target of just under 2.0 percent.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 08 2018. 21:20 IST
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