ECB President Christine Lagarde's Stark Warning on EU-US Trade War

In a revealing interview with France Inter, European Central Bank (ECB) President Christine Lagarde labeled a potential trade war between the European Union and the United States as a "lose-lose scenario." This statement underscores the growing tensions over trade policies that could have far-reaching consequences.

The Silver Lining and the Battle Against Inflation

Lagarde also pointed out that the tariffs imposed by United States President Donald Trump might offer the EU a unique opportunity to "show independence." On the topic of inflation within the Eurozone, she emphasized the ongoing challenge to maintain it "in check," aiming for a durable reduction to the target rate of 2%. "Achieving this requires carefully setting interest rates," Lagarde added.

Previous Warnings from ECB Colleagues

Earlier, Luis de Guindos, another ECB official, had cautioned that Trump's tariffs could not only harm the global and European economies but also negatively impact the United States, especially in terms of economic growth.