The President of the European Central Bank (ECB), Christine Lagarde, emphasized the need for Europe to be prepared for the introduction of trade tariffs by the new US President, Donald Trump.
In an interview with CNBC, Lagarde noted that Trump’s decision not to impose large-scale tariffs immediately after taking office was “a very measured step,” as such measures do not always yield the desired outcomes. According to her, Trump’s approach to tariffs is expected to be “more selective and targeted.”
Last fall, the European Union developed a list of American goods that could face tariffs in response to potential US actions.
In early January, Trump announced the creation of the Foreign Revenue Service to collect funds from the tariffs he plans to implement. He also stated his intention to impose tariffs on the European Union, accusing the EU of unfair treatment of the US.
The European Commission has been preparing for Trump’s return to the White House since the summer. As part of this preparation, the EU has adopted a “carrot-and-stick” strategy: threatening retaliatory tariffs while simultaneously offering to increase purchases of American goods.
