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 painted a grim picture of a potential trade war between the European Union and the United States, labeling it as a "lose-lose scenario" for both parties involved.

The Silver Lining and the Battle Against Inflation

Despite the dire outlook, Lagarde hinted at a potential upside, suggesting that President Donald Trump's tariffs could serve as an opportunity for the EU to "show independence." On the topic of inflation within the Eurozone, she emphasized the ongoing struggle to maintain it "in check," aiming for a sustainable reduction to the ECB's target of 2%. "Achieving this requires a carefully calibrated interest rate," Lagarde stated.

ECB's De Guindos Echoes Concerns Over Tariffs

Adding to the chorus of concern, ECB's Luis de Guindos warned that the repercussions of Trump's tariffs would extend beyond the European economy, adversely affecting global growth, including that of the United States. This sentiment underscores the interconnected nature of global economies and the far-reaching impact of trade policies.