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(Bloomberg) -- The European Central Bank warned that escalating global tariff tensions have emerged as a “significant concern” for financial stability and the global economy.

“Policy authorities need to identify the risks stemming from trade tensions, monitor them and evaluate their potential impact on financial stability,” six staff economists wrote in a note published on Tuesday that will feature in a bigger risk report scheduled for Wednesday.

US President Donald Trump’s trade war has unnerved markets, with investors rushing out of the US dollar so far this year — it has fallen against every other major currency tracked by Bloomberg.

The ECB recommended that “financial institutions should also take a number of proactive steps to cope with risks stemming from trade tensions.”

The report — prepared by economists Pauline Avril, Paul Bochmann, Stephan Fahr, Aoife Horan, Cosimo Pancaro and Riccardo Pizzeghello — echoes comments from ECB Vice President Luis de Guindos, who last week cautioned that the recent turmoil on tariffs could upend the region’s financial system.