European Central Bank President Christine Lagarde said Thursday the EU's "most obvious" response to growing global trade tensions would be to pursue a zero-for-zero tariff offer. Lagarde described the current environment as a "negative demand shock," pointing to the steep rise in average global tariffs, from about 3% to roughly 13% as one of the main triggers. She warned that the situation could worsen, with broader consequences for trade and investment.
In addition to the tariff issue, Lagarde highlighted the euro’s appreciation and falling energy prices as key factors reshaping the eurozone’s economic outlook and further decisions on policymaking.
Asked about global central bank independence, Lagarde stressed the importance of strong institutional frameworks and expressed confidence in continued cooperation with the Federal Reserve, especially regarding swap lines.
