US President Donald Trump's sweeping tariffs risk triggering a large "negative demand shock" in the Eurozone, a senior European Central Bank policymaker said as the ECB weighs an interest rate decision later this month, according to the Financial Times.

In an interview with the Financial Times, Greece's central bank governor Yannis Stournaras warned that the looming global trade war was likely to weigh heavily on Europe's economic growth. "A notable adverse impact on growth could lead to activity being much weaker than expected, dragging inflation below our targets," he said.

Stournaras warned that the euro area was facing the shock at a point in time when the outlook for growth was already "modest" and inflation was on track to meet the ECB’s medium-term target of 2%,. The ECB is set to make its next interest rate decision on April 17.