ECB chief Lagarde warns Europe against US tariff retaliation

London, Nov. 28, (dpa/GNA) – European Central Bank (ECB) President Christine Lagarde has warned against taking retaliatory measures in response to potential new tariffs imposed by US President-elect Donald Trump, in an interview to the Financial Times newspaper published on Thursday.

“We could offer to buy certain things from the United States and signal that we are prepared to sit at the table and see how we can work together,” Lagarde said, according to a transcript of her interview published by the ECB.

She argued that such a “cheque book strategy” was preferable to a purely retaliatory approach.

Lagarde reiterated warnings about the consequences of a possible trade war with the US. By offering to purchase goods from the US, the Europeans could signal their readiness to negotiate and explore possibilities for cooperation.

A trade war would be “in nobody’s interest, neither for the United States nor for Europe, or anyone for that matter,” the ECB chief added.

The interview was conducted on Monday, before Trump announced his intention on Tuesday to impose tariffs of 25% on all imports from Mexico and Canada on his first day back in office. Trump’s inauguration is due to take place on January 20.

Throughout his election campaign, Trump had generally announced far-reaching tariffs, arguing that this would lead US companies to increase domestic production and thereby create jobs.

GNA