Botín acknowledged that the unpredictability surrounding these tariffs complicates economic decision-making for both consumers and businesses, contributing to a slowdown in economic activity.

In response to the prevailing economic uncertainty influenced by these tariffs, the European Central Bank (ECB) is anticipated to cut interest rates by 25 basis points during its upcoming meeting on April 17, 2025.

Ana Botín, executive chair of Banco Santander, has cautioned that U.S. protectionist policies, particularly tariffs, will adversely affect American consumers more than those in Europe in the short term.

She further noted that Europe is likely to experience less immediate impact from these tariffs compared to the U.S.

Botín emphasized that tariffs effectively serve as a tax on consumers, which could lead to slower economic growth and heightened inflation rates in the U.S.

Despite these challenges, Botín expressed optimism regarding the fundamentals of the European economy and its resilience.

Analysts share her concerns that these tariffs may financially strain U.S. consumers.

Germany, heavily reliant on its auto sector, faces potential recession risks due to the shifts in trade patterns instigated by U.S. tariffs, as highlighted by German central bank Governor Joachim Nagel.

Since the beginning of 2025, President Donald Trump has enacted various tariffs on imports aimed at boosting domestic manufacturing and reducing trade deficits.

The White House has announced a significant 25% tariff on all car imports, set to take effect on April 2, 2025, which is expected to provoke retaliatory measures from the European Union.

Meanwhile, the European Union is working on proposals to enhance fiscal autonomy and increase defense spending, mobilizing nearly 800 billion euros.