Navigating Global Trade Tensions: Christine Lagarde's Call to Action

Christine Lagarde, President of the European Central Bank, has highlighted the ineffectiveness of coercive trade policies as a means of resolving financial imbalances. She emphasizes the importance of policy adjustments to avoid mutual economic damage, urging all countries to take responsibility for excess supply or demand, and to navigate towards global prosperity.

Christine Lagarde, President of the European Central Bank, has taken a strong stance against coercive trade policies, emphasizing their failure in resolving financial imbalances and their potential for mutual economic harm. Speaking in Beijing, she highlighted the need for policy adjustments across all nations to prevent trade tensions.

The United States sparked global economic unrest in April by imposing tariffs on numerous countries. Lagarde underscored the necessity for nations to assume responsibility and modify policies that contribute to either excessive supply or demand, as continued trade barriers could deteriorate global prosperity.

China's reliance on subsidies, especially for export-driven production, was spotlighted by Lagarde, who noted that other countries, particularly emerging markets, are also utilizing such strategies. She stressed that resolving trade conflicts requires adherence to global rules and crafting bilateral or regional agreements that benefit all parties.

(With inputs from agencies.)