The European Central Bank (ECB) has announced a significant reduction in interest rates, marking the seventh cut this year, as it seeks to mitigate the adverse effects of ongoing trade tensions and tariffs, particularly those stemming from the Trump administration. The rate is now set at 2.25%, a move aimed at supporting the faltering economy amid fears of a downturn. As markets react to this dovish stance, European stocks have experienced marginal losses, and speculation grows about potential further cuts in the coming months. ECB President Christine Lagarde addressed concerns over a clouded economic outlook, emphasizing the need for agility in response to these exceptional uncertainties.