Trump's new rates? Another factor of “volatility and uncertainty”

“ Nunca we know [if the threats are going to materialise] because the volatility and uncertainty in this aspect is always very large,” said Joaquim Miranda Sarmento, speaking to the Lusa agency at the entrance to the informal meeting of the finance ministers of the euro area and the EU, in Dublin by the rotating presidency of the Council occupied by Ireland.

The recent threats of President Donald Trump to move forward with new tariffs on the EU, which arose after the President of the European Commission, Ursula von der Leyen, proposed that Canada could become the first member of the European Union, deepening cooperation between the two blocs.

Trump reacted by threatening to apply “very heavy tariffs” to Europe or even to limit trade if he considers the approach between the EU and Canada a hostile act.

“ As I have said, [...] tariffs harm economies, harm consumers, especially in the lower lands ", said Joaquim Miranda Sarmento à Lusa.

However, the governor welcomed the deepening of trade relations between Brussels and Ottawa: “The EU’s ability to extend its trade links to Canada is positive for both blocs, but it is also positive for the United States, for sure.”.

“International trade, when it is fair and when it is balanced, generates gains for everyone,” he said.

Washington's new threat arises in the context of trade relations already marked by successive disputes between the United States and its partners, especially the EU, with which a 15% tariff ceiling has been established for most European exports to the US.

EU finance ministers are today discussing the competitiveness of the European banking sector during a working lunch following a European Commission report on market fragmentation.

The discussion takes place after the European Commissioner Maria Luís Albuquerque announced that Brussels will present in the first quarter of 2027 a legislative package to strengthen the competitiveness of banking and deepen market integration.

On this subject, Joaquim Miranda Sarmento defended the advancement of the Banking Union, in particular by establishing a European deposit guarantee system.

“ We always sought [...] that there was [...], even to ensure the balance and trust of all depositors ", argued.

The minister also advocated simplifying banking regulation in the EU, considering that European banking needs to “win scale” against competitors because it still has “very demanding regulation” created after the 2008 financial crisis.

On Saturday, the second and last day of the informal meeting, the impact of artificial intelligence (IA) on European economies and societies will be discussed.

In this regard, Joaquim Miranda Sarmento stated that AI technology already integrates the reform of public services in Portugal, allowing gains in speed, quality and productivity, but stressed the importance of ensuring a responsible use of technology.

“ What we have ahead of us as a job is to have an ambitious AI and technological development agenda, but without fail to look at what risks are and what the need for safeguards are,” Lusa said.