![\"Photographer:](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2026\/02\/7a9dcdf9ab431a53bdd1c99c75fced61.jpeg\")
Photographer: Alessia Pierdomenico\/Bloomberg <\/p>\n Photographer: Alessia Pierdomenico\/Bloomberg <\/p>\n
(Bloomberg) — The US economy has borne most of the burden of tariffs imposed by President Donald Trump, according to European Central Bank Governing Council member Fabio Panetta.<\/p>\n
Photographer: Alessia Pierdomenico\/Bloomberg <\/p>\n
\u201cForeign exporters seem to have shouldered a portion of it, estimated at around 10%,\u201d he said Saturday in Venice. \u201cInitially, the impact was absorbed by US firms\u2019 profit margins, and was then partially passed on to consumers, who now bear about half of it.\u201d<\/p>\n
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Speaking at an annual Assiom-Forex event, Panetta highlighted that \u201coverall, tariffs are estimated to have contributed just over half a percentage point to inflation, which remains above the Federal Reserve\u2019s target.\u201d<\/p>\n
Trump suffered a setback on Friday when the Supreme Court struck down the bulk of the levies he imposted last year saying he exceeded his authority by invoking a federal emergency-powers law. The president responded by imposing a 10% global tariff and pledging a raft of investigations that could allow him to enact more import taxes.<\/p>\n
Panetta also noted that tariffs have led to a significant geographical reconfiguration of trade flows. This includes a contraction of US imports from China, an increase in US imports from third countries such as Mexico, Vietnam and Taiwan, and a strengthening of China\u2019s presence in alternative markets.<\/p>\n
\u201cToday the world is tightly interdependent \u2014 no country can prosper for long by isolating itself,\u201d Panetta said.<\/p>\n
In response to the SCOTUS announcement, Trump defended his tariff program saying it is essential not only to draw manufacturing back to the US, but as a foreign policy tool.<\/p>\n
\u201cThe US still holds a dominant position in critical areas such as technology, military capacity, and international finance,\u201d and \u201cfor many countries, disengagement from the US ecosystem is simply not a viable option,\u201d Panetta said.<\/p>\n
Yet the US also needs Europe, which \u201cabsorbs one fifth of US goods exports and 40% of its service exports, generates one-third of the foreign profits of US multinationals, and holds a substantial amount of US government securities,\u201d he said.<\/p>\n
Separately, Panetta, who also heads the Bank of Italy, discussed the euro area, which he said has strong institutions but suffers from incomplete economic and financial integration and the need for the introduction of a common safe asset.<\/p>\n
\u201cA European sovereign bond would enable European public goods to be adequately financed and, at the same time, provide investors a safe and liquid benchmark asset, thereby boosting the Union\u2019s financial integration,\u201d he said, reiterating earlier comments.<\/p>\n","protected":false},"excerpt":{"rendered":"Photographer: Alessia Pierdomenico\/Bloomberg (Bloomberg) — The US economy has borne most of the burden of tariffs imposed by…\n","protected":false},"author":3,"featured_media":607519,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[3638,64,79,24524,261164,28910,5005,67,132,68],"class_list":{"0":"post-607518","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bloomberg","9":"tag-business","10":"tag-economy","11":"tag-european-central-bank","12":"tag-fabio-panetta","13":"tag-photographer","14":"tag-president-donald-trump","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116112855419379812","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/607518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=607518"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/607518\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/607519"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=607518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=607518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=607518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}