Europe should be ready for US tariff hike, - European Central Bank President Lagarde
Europe should be prepared for the introduction of new duties on imports of goods to the United States, which were promised by former US President Donald Trump.
This was announced by Christine Lagarde in an interview with CNBC in Davos, Censor.NET reports.
Lagarde noted that although Trump has not yet signed a decree on common tariffs, this does not mean that the threat of duties has disappeared. She added that the introduction of global duties may not be as effective as the selective and targeted duties that the US administration plans to introduce.
According to her, the fact that Trump has not yet signed the executive order was a reasonable approach, as "total tariffs will not necessarily lead to the desired results."
The ECB President emphasized the importance of Europe being prepared for possible changes and taking them into account in its plans. "We in Europe need to be prepared and expect in advance what will happen in order to respond to it," she added.
Lagarde also noted that the European Central Bank is not overly concerned about external risks to inflation, although she acknowledged that accelerating inflation in the United States could affect the US economy.
As noted, in 2024, the ECB cut rates by 100 basis points, and the key deposit rate is currently 3%. According to economists, the regulator may cut rates by another 100 basis points in 2025, 25 points for each cut.
