ECB diGuindos is no the wires saying:

• We are optimistic with regard to inflation.
• We believe that will converge toward target in coming quarters on a stable basis
• Main impact of tariffs on growth and short lived impact on inflation
• For growth, trade war is extremely detrimental.
• Need to be very prudent with policy.

If exports will be less because of tariffs on goods, growth will be less, offsetting tariff inflation – or that is the thought.

This article was written by Greg Michalowski at www.forexlive.com.