Overview
- In a Face the Nation interview, the ECB president argued many economists overstated the immediate impact of U.S. tariffs.
- She said the current tariff burden falls roughly one-third each on exporters, U.S. importers, and consumers.
- Lagarde warned that as corporate margins compress, more of the cost will pass through to prices paid by households.
- She cited EU-to-U.S. tariffs rising from about 1.5% to 13% under recent U.S. decisions.
- The interview referenced an S&P Global estimate projecting up to $1.2 trillion in business costs worldwide this year.