European Central Bank (ECB) President Christine Lagarde has cautioned that recent U.S. tariff policies risk destabilizing global economic growth and exacerbating international uncertainties. Speaking to Ireland's Newstalk radio on Wednesday, Lagarde underscored the ramifications of escalating trade tensions, stating, "It will be negative the world over" with impacts tied to the "scope, products targeted, and durability" of such measures.
Lagarde emphasized that tariffs harm both the economies targeted and those imposing them, adding that such disputes often end with negotiations. "Predictability is in very short supply at the moment," she said, noting ambiguity around the final scope of U.S. measures. Her remarks reflect growing concerns over ripple effects in global supply chains and investor confidence.
In a call to action, Lagarde suggested the EU view these tensions as a catalyst for self-reliance. During a French radio interview, she urged collective EU efforts to "take our destiny into our own hands," framing current challenges as an opportunity for economic resilience.
The comments arrive as policymakers worldwide assess the broader implications of renewed trade barriers, particularly for Asian economies closely tied to global markets. Analysts warn prolonged disputes could dampen growth in export-driven sectors across the region.
