European Central Bank President Christine Lagarde has warned that U.S. President Donald Trump’s proposed tariffs, expected to be announced on Wednesday, April 2, will have global repercussions. The extent of the damage, she noted, will depend on their scope, duration, and potential for negotiation.
“It will be negative the world over, and the density and durability of the impact will vary depending on the scope, on the products targeted, on how long it lasts, on whether or not there are negotiations,” Lagarde said in an interview with Ireland’s Newstalk radio.
She acknowledged that while tariff escalations often lead to negotiations, they can still cause significant disruption. “Let’s not forget that quite often, these escalations—because they prove harmful even for those who impose them—lead to negotiation tables where people actually sit down, discuss, and eventually remove some of those barriers.”
The Trump administration is set to introduce “reciprocal tariffs” targeting nations that impose duties on U.S. goods. This follows previous levies on imports from key trading partners, including Mexico, China, and Canada.
Speaking in Dublin, where she received an award honoring former World Trade Organization Director-General Peter Sutherland, Lagarde remarked on the growing uncertainty surrounding global trade. “Predictability is in very short supply at the moment,” she stated, adding that the economic impact of increased defense spending in Europe remains uncertain.
