European Central Bank President Christine Lagarde has urged Europe to brace itself for potential trade tariffs from the United States under the newly inaugurated President Donald Trump. Speaking to CNBC at the World Economic Forum in Davos, Lagarde emphasized the importance of anticipation and readiness for any economic measures that President Trump might take against the European Union.
Trump has expressed a critical stance against the EU, stating his intention to impose duties on goods imported from the region. During a press interaction shortly after his inauguration on Monday, Trump did not mince words regarding his views on the EU's trade practices.
"Very, very bad to us. So they're going to be in for tariffs." – Donald Trump
Lagarde acknowledged that while Trump had not implemented blanket tariffs on his first day in office, she considered this delay a "very smart approach." She speculated that any forthcoming tariffs would likely be "more selective, focused," rather than sweeping measures that could disrupt international trade abruptly.
Valdis Dombrovskis, the European Union's commissioner for the economy, weighed in on the situation, affirming that the EU stands ready to defend its economic interests. He noted that should the need arise, the bloc would respond "in a proportionate way" to any tariffs imposed by the U.S.
The interview with Lagarde was conducted by CNBC's Karen Tso and reported by Katrina Bishop. This discussion took place amidst the backdrop of the World Economic Forum, an annual gathering in Davos where global leaders convene to discuss pressing economic issues.