The ECB President reaffirmed her estimate of a decrease of about 0.3 percentage points for Europe in the first year of tariffs on U.S. imports from Europe. She added that if Europe responds with reciprocal measures, growth will be even lower, down 0.5 percentage points.

The pan-European Stoxx 600 ( STOXX) fell nearly 1.7% to 533 mark on Monday as traders braced for U.S. President Donald Trump’s tariffs to come into force. Trump on Sunday said that reciprocal tariffs he is set to announce this week will include all countries, and not just a smaller group of 10 to 15 nations.

The comments come as he prepares to unveil a massive slate of import taxes on Wednesday, in what he has called America's "Liberation Day". The measures will come on top of tariffs already imposed by Washington on aluminium,

U.S. President Donald Trump said on Sunday that reciprocal tariffs he is set to announce this week will include all nations, not just a smaller group of 10 to 15 countries with the biggest trade imbalances.

One of President Trump's main goals since taking office two months ago has been tariffs. He says more are coming this week.

The president said he “couldn’t care less” if automakers raised prices in response to planned tariffs, reasoning that buyers would choose U.S.-made cars over foreign brands.

The US exports less than $300,000 (£231,000) in jam each year to the bloc. It's an imbalance that US company JM Smucker, one of the biggest sellers of such products in the US, blames on a 24%-plus import tax its fruit spreads face in the EU.