The European Central Bank is weighing the impact of higher U.S. tariffs on eurozone inflation, and appears likely to continue with a series of rate cuts that began in June and has picked up pace.

The tariffs promised by U.S. President-elect Donald Trump would upend international trade but may ultimately have a "minor impact" on inflation, European Central Bank policymaker Joachim Nagel said.

Trump’s tariff plans are cheered by most of his economic advisers, who see them as a useful tool to rebalance an import-dependent U.S. economy. Most economists fear the inflationary impacts of sharply higher taxes on U.

European stocks slipped on Monday amid worries around Donald Trump’s policies and as traders trimmed the odds of European Central Bank’s rate cuts.  The Stoxx Europe 600 Index closed 0.1% lower, after ending last week with its fourth straight week in the red — the longest losing streak for the index since 2022.

European stocks edged lower on Monday amid worries around Donald Trump’s policies and after stocks in China failed to hold onto intraday gains.Most Read from BloombergIn Cleveland, a Forgotten Streetc