Banco Santander SA Executive Chair Ana Botin said on Friday, April 4, at the bank’s annual general meeting that the reciprocal tariffs announced by United States President Donald Trump on Wednesday, April 2, are likely to hit the US economic system harder than Europe.
At the same time, Ana Botin noted that the growth of European gross domestic product (GDP) in the current trading reality will be lower compared to the indicators mentioned in the preliminary forecasts. The initial estimates also contained projections that economic growth in Europe would be weaker than in the United States. At the same time, according to Ana Botin, now the downside adjustment will be less than for the US.
The tariffs announced by Washington this week have become a kind of shock factor for the markets. It is worth noting that these measures have already provoked a backlash. On Friday, China announced tariffs on US imports.
Against the background of the escalation of the global tariff confrontation, the value of shares of European banks on Friday showed a decline, which turned out to be the most intense in the last five years, since the outbreak of the coronavirus pandemic. The corresponding dynamic, as noted by the media, is largely related to concerns about the negative impact of the trade war on economic growth prospects. It is worth noting that these perspectives are relevant both on a global scale and at the regional level.
Santander on Friday confirmed all its financial targets for the current year, despite the tariffs announced by Donald Trump and the turbulence in the market caused by these measures to tighten Washington’s trade policy.
