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      ECB chief warns of severe economic damage from U.S.-led trade wars

      Source: Xinhua

      Editor: huaxia

      2025-03-15 05:57:30

      FRANKFURT, March 14 (Xinhua) -- A trade war initiated by U.S. President Donald Trump would harm the global economy, including that of the country imposing the measures, European Central Bank (ECB) President Christine Lagarde warned on Friday.

      "If we were to go to a real trade war, where trade would be dampened significantly, that would have severe consequences" for growth and prices around the world, "particularly in the United States," ECB President Christine Lagarde told the BBC in an interview released on Friday.

      She expressed concern over Trump's decisions and counter-decisions, describing them as "a cause for concern and a reason for us to be extremely vigilant." She added that this has created "a level of uncertainty we have not seen for a long time."

      "Every trade war will harm the global economy," noted the ECB president. "Everyone will suffer, that's a constant in the history of trade."

      The ECB president noted that such measures are already dampening business activity by increasing uncertainty for companies, consumers, and investors.

      Speaking at an ECB conference on Wednesday, Lagarde acknowledged that maintaining stability in an era of exceptional uncertainty is a "formidable task," noting that the ECB "cannot provide certainty about the rate path", as the environment is different now. Last week, the ECB decided to slash key interest rates by 25 basis points in a bid to wind down the restrictive monetary policy.

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