Jim Power: Central bankers face dilemma with shift in global trading order

The European Central Bank warned that 25% US tariffs would knock 0.3% off growth in the first year and, if the EU retaliates in kind, the drop would be around 0.5%

The European Central Bank cannot back away from cutting interest rates further. It may delay cuts, but they must come given the economic backdrop. 

We live in uncertain times, anxiously awaiting the next pronouncement or action from US president Donald Trump or de-facto vice president Elon Musk.

The world is confused and few understand what is happening or what will happen. Tariffs are the immediate focus and Trump is sending a message that he wants to dramatically change the global trading order.