European Central Bank (ECB) President Christine Lagarde declared on Thursday that the application of tariffs would have a "global negative impact."
Answering questions after the ECB's latest interest rates decision, Lagarde stressed that a decision like that would be "totally unrealistic," adding to existing uncertainty around the globe. Besides, any tariff changes would depend on various factors, including whether there is a single policy decision or varying rates across different countries.
She also mentioned concerns about potential trade rerouting and the risk of retaliatory measures from affected nations. Finally, the ECB chief suggested policymakers must wait for further clarity before making economic assessments.