The last thing he needs is a trade war with the United States. Unfortunately, that’s exactly what President Donald Trump is starting, threatening 25 percent tariffs on European imports. And target number one is the German car industry — the backbone of Europe’s economy.

The pace of Euro area annual inflation is estimated to have slowed to 2.4pc in February, ending a five month run of acceleration. The ‘flash’ or estimated EU’s Harmonised Consumer Price Index for February indicated the pace of inflation slowed to 2.

President Donald Trump said he has decided to hit the European Union with 25% tariffs, saying EU was formed "to screw the United States." “We have made a decision and we’ll be announcing it very soon,” Trump said during a Cabinet meeting Wednesday.

(CN) — Annual inflation in the eurozone and European Union is drifting away from a 2% goal established by the European Central Bank in 2024. According to a report released Monday by Eurostat, the annual inflation rate climbed to 2.5% in the eurozone in January and 2.8% in the broader European Union.

DAX eyes ECB rate decision as inflation concerns persist. Market sentiment shifts with US tariff risks and Fed rate cut expectations.

It is widely expected that the ECB will again reduce borrowing costs when it meets next as inflation remains under control and the Eurozone economy slows. Wage growth has also cooled in recent months, further supporting the case for more rate cuts.

Consumer prices in France were up 1.8% year-on-year in January, statistics office INSEE said on Tuesday, in line with analysts' expectations and the preliminary reading.

The EUR/USD pair fell throughout the first half of the week, recovering in the second half to close it little changed at around 1.0480. The US Dollar (USD) benefited from the risk-averse environment, the latter resulting from the United States (US) President Donald Trump's tariffs plan.

The Dutch annual rate of inflation rose in February to 3.8%, national statistics agency CBS said on Monday in a flash forecast. In January, inflation fell to 3.3%. Month on month, the consumer price index was up over one percentage point.

Bulgaria will ask the European Commission and the European Central Bank for an assessment on whether the Balkan country meets all criteria to join the euro zone in January next year, its finance minister said on Monday.