European Central Bank President Christine Lagarde issued a stark warning on Wednesday about the global repercussions of U.S. President Donald Trump’s proposed tariffs, which are expected to be announced on April 2. Speaking in an interview with Ireland’s Newstalk radio, Lagarde emphasized that the tariffs would have widespread negative effects, with the severity depending on factors such as the scope, duration, and whether negotiations follow.
“It will be negative the world over, and the density and durability of the impact will vary depending on the scope, on the products targeted, on how long it lasts, on whether or not there are negotiations,” Lagarde explained.
While acknowledging that tariff escalations often lead to eventual negotiations, she cautioned that these measures can still cause significant disruption. “Let’s not forget that quite often, these escalations—because they prove harmful even for those who impose them—lead to negotiation tables where people actually sit down, discuss, and eventually remove some of those barriers.”
The Trump administration plans to introduce “reciprocal tariffs” aimed at countries imposing duties on U.S. goods, continuing a pattern of levies on key trading partners, including China, Mexico, and Canada.
Lagarde, who was in Dublin to receive an award honoring former World Trade Organization Director-General Peter Sutherland, also commented on the growing uncertainty in global trade. “Predictability is in very short supply at the moment,” she said, highlighting the uncertain economic impact of increased defense spending in Europe.
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