The European Central Bank meets on Thursday with all focus on what the tariff chaos means for how much further policymakers will need to cut rates.
U.S. President Donald Trump first announced reciprocal tariffs around the world, including 20% on the European Union earlier in April before suddenly dialling back those duties last week for a 90-day period, whipsawing financial markets.
The resulting additional time to negotiate has barely relieved jittery markets and the outlook hasn't become any more certain. The U.S. excluded some electronics imports from steep tariffs on Friday, then said the move would be short-lived, the latest source of uncertainty.
"It will be very interesting how they (the ECB) walk that fine line between acknowledging what needs to be acknowledged without putting too stressed a tone to it," said Morgan Stanley chief European economist Jens Eisenschmidt.
