Lagarde: Trump’s tariffs will be negative worldwide

European Central Bank President Christine Lagarde said on Wednesday that the tariffs planned by US President Donald Trump will be negative worldwide, and that the damage will depend on their extent, duration, and the success of negotiations.

The Trump administration is scheduled to announce “reciprocal tariffs” on Wednesday targeting countries that impose tariffs on US goods. This move follows the imposition of new tariffs on products from Mexico, China, and Canada – the United States’ largest trading partners – as well as other goods, including steel and cars.

“The impact will be negative worldwide, and the severity and durability of the impact will vary depending on the scope, the products targeted, the duration of the impact, and whether or not negotiations are underway,” Lagarde said in an interview with Ireland’s Radio Newstock. She continued: “Let’s not forget that tariff escalations often prove harmful, even to those imposing them, and lead to negotiating tables where people sit down, discuss, and ultimately remove some of those barriers.”

Lagarde was in Dublin to receive an award named in honor of Irishman Peter Sutherland, the former director-general of the World Trade Organization, whom Lagarde said “would turn in his grave if he knew what was going on right now.”

She said: “I don’t think I’ve mentioned the word ‘uncertainty’ as many times as I have in the last few weeks, because we simply don’t really know until today, the day of the supposed announcement, what the deal (with the US) will be like for the rest of the world.”

Lagarde added that the “final verdict” on the economic impact of increased defense spending in Europe has yet to be determined, and will depend on how and where the money is spent.