Overview

• Christine Lagarde, President of the European Central Bank, has called for a measured response to potential new U.S. tariffs under President-elect Donald Trump, warning against retaliation.
• Lagarde suggested that Europe could offer to increase imports of certain U.S. goods, such as liquefied natural gas or defense products, as a gesture to encourage negotiations.
• Trump has announced plans to impose a 25% tariff on imports from Mexico and Canada, with additional tariffs of 10% on Chinese goods and broader increases on foreign imports.
• Lagarde emphasized that a trade war would harm both the U.S. and Europe, advocating for solutions that prioritize cooperation over conflict.
• European policymakers are concerned about the potential economic impact of U.S. tariffs, including higher inflation and slower growth in the Eurozone.