Trump's tariffs will be negative the world over, says ECB's Lagarde
"It will be negative the world over and the density and the durability of the impact will vary depending on the scope, on the products targeted, on how long it lasts, on whether or not there are negotiations," Ms Lagarde said. (Arne Dedert/dpa via AP)
US President Donald Trump's planned tariffs will be negative across the world, with the damage depending on how far they go, how long they last and whether they lead to successful negotiations, European Central Bank head Christine Lagarde said on Wednesday.
"It will be negative the world over and the density and the durability of the impact will vary depending on the scope, on the products targeted, on how long it lasts, on whether or not there are negotiations," she said in an interview on Newstalk radio.
"Because let's not forget quite often those escalation of tariffs, because they prove harmful, even for those who inflict it, lead to negotiation tables where people actually sit down and discuss and eventually remove some of those barriers."
Last month, Mr Trump tasked his economics team with devising plans for reciprocal tariffs on every country that taxes US imports, as well as to counteract non-tariff barriers such as vehicle safety rules that exclude US autos, and value-added taxes that increase their cost.
On March 30, Mr Trump said he was planning to unveil a massive tariff plan, which he has called "Liberation Day." The reciprocal tariffs he is set to announce will include all nations.
Mr Trump's tariffs are expected to be universal across all European exports into the US and to be in the region of 20%. They are also expected to be followed by further additional tariffs on key sectors, particularly for Ireland, such as pharmaceuticals.
Global trading partners' potential counter-tariffs targeting US agricultural, energy and machinery exports could escalate into a worldwide trade war, creating uncertainty for businesses and investors.
Reuters
