Global Uncertainty: Tariffs and Trade Tensions Erode Economic Stability

European Central Bank head Christine Lagarde discussed the global negative impact of U.S. President Donald Trump's planned tariffs. She highlighted the uncertainty surrounding their duration and extent, emphasizing their role in encouraging trade negotiations. Lagarde also addressed euro zone inflation goals and defense spending concerns.

European Central Bank President Christine Lagarde has voiced concerns over the global repercussions of U.S. President Donald Trump's planned tariffs, describing them as detrimental to worldwide economic growth.

Speaking on Ireland's Newstalk radio, Lagarde emphasized the unpredictability tied to the tariffs' scope and longevity. However, she acknowledged that such tariffs often lead to negotiations aimed at resolving trade conflicts.

In Dublin to accept an award in honor of former WTO director Peter Sutherland, Lagarde commented on the euro zone's inflation goals. She described the economic climate as short on predictability and discussed European defense spending implications.

(With inputs from agencies.)