Trade conflict
ECB boss Lagarde: Trump’s tariffs damage especially the USA
The trade dispute between Donald Trump and the EU intensifies. According to ECB President Christine Lagarde, this is particularly affected by the United States. After all, the customs dispute is a chance for Europe.
According to ECB President Christine Lagarde, a trade war triggered by Donald Trump would have had great economic consequences – and would particularly affect the USA. “If there was a real trade war that would dampen the trade significantly, the serious consequences for growth and prices around the world, but especially in the USA,” said Lagarde to BBC.
The President of the European Central Bank made it clear that Trump’s erratic customs policy with decisions and opposite decisions were cause for concern. This causes us to “be extremely vigilant,” said Lagarde. In the meantime, the customs policy of the new US government has “caused a measure of uncertainty that we have not experienced for a long time”.
“Every trade war will harm the global economy,” said Lagarde. The central banker added. “This is a constant in commercial history.”
EU defends itself in the customs dispute with countermeasures
Since the inauguration in January, US President Trump has announced tariffs several times, partially introduced and withdrawn some. The Kiel Institute for the World Economy (IFW) had recently predicted that the US tariffs on steel and aluminum imports damage the United States more than the EU.
In response to the recently entered into force of 25 percent to steel and aluminum imports, the EU has announced against tariffs. In a first step from April 1st, they should meet products such as Bourbon Whiskey, motorcycles and peanut butter. Further countermeasures are planned for mid -April. According to the European Commission, US goods exports worth 26 billion euros would be affected by the planned EU reactions. Trump then threatened the EU with tariffs of 200 percent on wine, champagne and other alcoholic drinks.
Lagarde: “Big wake call for Europe”
Lagarde can also gain something positive from the customs conflict. She spoke of a “big wake -up call for Europe”. That may be a European moment again, she said and referred to the announcement of considerable arms expenditure. Both Germany and the EU countries want to spend much more money on defense.
dpa
Source: Stern
