Tariffs Countering VATs Seen Giving EU Bank Bigger Global Role

The European Central Bank should prepare to play a greater role in stabilizing global financial markets if the US slaps tariffs on countries that have taxes it deems discriminatory, according to European Union economists.

A “high”-intensity trade war could ensue if the US decides value-added taxes should be countered with tariffs, which would “disproportionately affect Europe” and push the ECB to become a greater provider of currency liquidity, the Economic Governance and Economic and Monetary Union Scrutiny Unit said in a report Wednesday.

The report from part of the EU Parliament’s in-house think tank comes ahead of Parliament’s ...