The European Central Bank's board member Christodoulos Patsalides has warned, according to Jinse Finance, that if U.S. President Donald Trump fulfills his threat of imposing trade tariffs, the European economy may ultimately fall into stagflation. "Trade tensions are escalating," the Central Bank Governor of Cyprus said in Nicosia on Thursday. "If trade restrictions become a reality, the result could be inflation, economic recession, or even worse, stagflation." He indicated that although there is still room to drop borrowing costs, it should be done "at a steady pace and magnitude."