ECB's Draghi sees small effect of trade tariffs, fears retaliation

FRANKFURT (Reuters) - The direct effect on the euro zone economy of trade tariffs announced by the United States and China is small but they can hurt investor confidence and trigger retaliation, the head of the European Central Bank said on Wednesday.

"The direct effects are not big," Mario Draghi told students at an ECB events. "In the end the key issue is retaliation."

(Reporting by Francesco Canepa; Editing by Alison Williams)

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