As of 9:00 AM in Lisbon, the EuroStoxx 600 index fell by 0.78% to 548.65 points, with major European markets also experiencing declines.

The yield on Germany's 10-year bonds fell to 2.770%, while Brent crude oil prices rose to $72.15 per barrel.

The share of U.S. exports in Portuguese goods is 6.8%, slightly lower than the euro area's 8.2% in overall trade.

The Bank of Portugal projected that U.S. tariffs could reduce Portugal's GDP by 1.1% over three years, with significant effects in the first two years.

Lagarde suggested that Europe's response should focus on more integration rather than less, both within the EU and with external partners, stating that greater integration could offset losses from unilateral tariffs and retaliation.

In Asia, stock markets followed suit with declines, particularly in China, where the Shanghai index lost 1.29%.

She emphasized the need for vigilance in the face of high political uncertainty impacting price stability, particularly regarding trade policy in Washington.

On March 20, 2025, Wall Street closed lower amid economic uncertainty, with the Dow Jones down 0.03% and the Nasdaq down 0.33%.

ECB President Christine Lagarde warned that U.S. tariffs of 25% on European imports could decrease Eurozone growth by up to 0.3 percentage points in the first year and increase inflation.

Lagarde presented these estimates to the Economic Affairs Committee of the European Parliament, emphasizing considerable uncertainty around the figures.

She indicated that the impact of tariffs might be less severe in the medium term as weaker economic activity would lower inflationary pressures, emphasizing that the effect of tariffs may not be linear due to potential reconfiguration of global supply chains.

Despite the potential impact on growth and inflation, Lagarde stated that the ECB would not respond by increasing interest rates, reaffirming the bank's commitment to stabilizing inflation sustainably at its medium-term target of 2%.