FRANKFURT: Europe&#39;s economy is holding up better than expected in the face of US President Donald Trump&#39;s new tariffs &mdash; in part because the European Union didn&#39;t retaliate with self-defeating tariffs of its own, the head of the European Central Bank said Tuesday. Christine Lagarde said the impact of Trump&#39;s trade war on growth and inflation in the 20 countries that use the euro currency had also been softened by a stronger euro and by the conclusion of a trade deal with Trump. The agreement capped tariffs at 15% and took away the uncertainty that threatened to delay or disrupt business investment. &ldquo;A year ago, most would have assumed that US tariffs ... would trigger a major adverse shock to the euro area economy,&rdquo; Large said in a speech delivered at a central banking conference in Helsinki, Finland. &ldquo;Yet some of these assumptions have not been borne out.&rdquo; There had been little impact on inflation, she said, and effects on growth have been &ldquo;relatively moderate&rdquo; due to European governments taking pro-growth measures in response. The European Union&#39;s executive commission prepared a list of goods to hit with retaliatory tariffs, or import taxes, but suspended them once the tariff deal was struck between Trump and Commission President Ursula von der Leyen in July. The reasons for nonretaliation included pressure from business groups not to get into a prolonged cycle of tit-for-tat tariff increases, as well as concerns about jeopardizing US support for Ukraine. As a result, Europe continued to receive the imported raw materials and goods it needed for its economy without hindrance from high tariff costs or bottlenecks that could raise prices. &ldquo;As a result, we have not yet seen significant supply chain disruption,&rdquo; Lagarde said. &ldquo;Global supply chain pressures remain contained, and in the euro area, bottleneck indicators are close to historical averages.&rdquo; Trump&#39;s policies have been accompanied by a fall in the dollar and a corresponding strengthening of the euro. That makes Europe&#39;s imports cheaper and helps the ECB in its efforts to contain the annual rate of inflation, which was a moderate 2% in August. The EU and its member governments have taken additional measures to strengthen growth, including free trade agreements with the South American Mercosur countries &mdash; Argentina, Brazil, Bolivia, Paraguay, and Uruguay &mdash; and with Mexico. National governments have increased defense spending due to the perceived threat from a newly assertive Russia. At the same time, Germany has committed to large-scale investment in roads, rails, and bridges after years of underspending. Nonetheless, growth remains mediocre, coming in at only 0.1% in the second quarter compared to the previous quarter. Tariffs and the associated uncertainty will still reduce the growth rate by approximately 0.7 percentage points through 2025 and 2027.

Business

Banking

ECB chief Christine Lagarde said Europe’s economy has withstood Trump’s tariffs better than expected. A trade deal, stronger euro, and pro-growth measures limited inflation and disruption, though growth remains weak and tariffs will weigh modestly until 2027.

Europe's top central banker says economy holding up better than expected

Shizza Jasmin

ISLAMABAD: Prime Minister Shehbaz Sharif, in an exclusive interview with Pakistan TV Digital, outlined his vision on youth, agriculture and economic prosperity. The prime minister made these remarks during the launch of Pakistan TV Digital, an English-language platform designed to present Islamabad&rsquo;s voice to global audiences through credible, video-first journalism.&nbsp; &ldquo;These devastating floods have damaged our economy in a way which we did not foresee,&rdquo; PM Sharif said on Pakistan TV&rsquo;s podcast The Chatroom with Shizza. &ldquo;We are meeting this challenge with joint efforts,&rdquo; referring to the coordinated flood response and rescue operations by the federal government, National Disaster Management Authority (NDMA), provincial governments, and the military.<div class="fr-embed responsive-video"><div class="video-wrapper aspect-video"><iframe src="https://www.youtube.com/embed/kuOoFRxCQsI" title="Prime Minister Shehbaz Sharif Launches Pakistan TV Digital" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="" style="width: 100%; height: 100%; min-height: 0px;"></iframe></div></div>He outlined a future where Pakistan leverages its &ldquo;youth bulge,&rdquo; expands its agricultural sector, and implements vocational training programs to convert demographic challenges into economic opportunities. Once on the brink of economic collapse, &ldquo;Pakistan&rsquo;s economy is now stable&rdquo;, the prime minister said. He credited the change to what he called &ldquo;extraordinary teamwork, untiring efforts, and a sense of purpose to achieve results.&rdquo;

Economy

Launches Pakistan TV Digital, affirms resilience after floods, Islamabad’s shift toward stability and growth, hails synergy among stakeholders.

Economic collapse averted, focusing on youth: PM Shehbaz

Gaitty Ara Anis

WASHINGTON: Pakistan Ambassador to the United States Rizwan Saeed Sheikh has said that Islamabad&rsquo;s importance to the US is not temporary; it is rooted in history. Speaking at the launch of Pakistan TV, the ambassador shared his thoughts on the Pakistan-US relationship and its significance in the context of shifting global politics. In an exclusive interview with Pakistan TV, he said that Pakistan, with over 250 million people, has a large portion of its population under 23. Therefore, the importance of such a vast and strategically vital country can only be long-lasting and increasing. Replying to a question, the ambassador said, &ldquo;Over the past 78 years, they have seen many twists and turns, but it&#39;s the strategic location and geopolitical significance of Pakistan that continues to be a constant in bilateral ties with the United States. This new phase is certainly as promising as it has ever been.&rdquo; Regarding the utilization of the newly agreed-upon agreement to explore oil and rare earth minerals in Pakistan, he said that the recently signed Memorandum of Understanding with the US was perhaps only the beginning. &ldquo;We believe more American companies will be interested in joining us in this effort to unlock the wealth beneath the surface and use it as an international public good, not only for the benefit of our two countries but also for the broader good of humanity.&rdquo; He said that Pakistan does not plan to limit itself to just one sector, as it aims to expand into industries like IT. &ldquo;Pakistan&#39;s cost-effectiveness in the IT sector is 70% lower than in the United States and 20% to 30% more cost-effective than any of our competitors, whether it&#39;s India, Egypt, or the Philippines,&rdquo; he added. Talking about US-India relations, he said that Pakistan does not believe in viewing our relations with the U.S. through the lens of any other country. &ldquo;Our relations with the United States should not be contingent on or compared to any other country, whether in the region or anywhere in the world. We are a mega country. The relationship between two mega countries is certainly futuristic and stands on its own.&rdquo; Commenting on the upcoming UNGA meeting, he said that the delegation will be led by the prime minister. As an active member of the UN, Pakistan has always used its geostrategic and geoeconomic position to &ldquo;punch above our weight in multilateral relations,&rdquo; he said, adding that Pakistan&rsquo;s presence at the UN forum this time would also be strong.

Foreign Affairs

Pakistan's US ambassador emphasizes long-term bilateral ties, strategic value, economic opportunities, and independent foreign policy amid global shifts, especially in energy, IT, and multilateral diplomacy.

Pakistan’s strategic value to US is enduring: envoy

Web Desk

ISLAMABAD: Pakistan Commerce Minister Jam Kamal Khan arrived in Tehran on Sunday for a three-day visit, his ministry said, leading Islamabad&rsquo;s delegation at the 22nd Iran-Pakistan Joint Economic Commission (JEC).&nbsp;A critical round of talks aimed at accelerating implementation of recent bilateral trade agreements and pushing toward a $10 billion trade volume target, the statement added.&nbsp;The JEC, co-chaired by Iran&rsquo;s Minister of Roads and Urban Development Farzaneh Sadegh, comes on the heels of Iranian President Dr. Masoud Pezeshkian&rsquo;s high-profile visit to Islamabad in August, during which 12 memoranda of understanding (MOUs) were signed in sectors ranging from tourism and agriculture to technology, transport, and trade.&nbsp;The commission is expected to provide a concrete platform to translate those MOUs into actionable projects. Iranian Ambassador to Pakistan Reza Amiri Moghaddam said on X that the JEC would &quot;pave the ground for an effective platform to advance the implementation of agreements reached between the high-ranking officials of the two countries.&quot;&nbsp;According to Iran&rsquo;s state media outlet IRNA, the commission&rsquo;s proceedings are seen as instrumental in meeting the ambitious $10 billion bilateral trade goal set by both governments.&nbsp;In an interview with IRNA, Pakistan&rsquo;s Ambassador to Tehran, Muhammad Mudassir Tipu, said that the meetings would comprehensively address trade, border management, and economic cooperation, with favorable outcomes expected from talks between senior officials.&nbsp;During his visit, Kamal is also scheduled to meet several key Iranian ministers and senior officials, underscoring Pakistan&rsquo;s intent to revitalize commercial ties and deepen strategic economic engagement with its western neighbor.

Pakistan’s Commerce Minister Jam Kamal begins three-day Tehran visit to advance $10 billion trade agenda.

Articles tagged with "Economy"

Europe's top central banker says economy holding up better than expected

Economic collapse averted, focusing on youth: PM Shehbaz

Pakistan’s strategic value to US is enduring: envoy

Pakistan eyes $10 billion trade goal during Tehran visit