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Buy American to avoid Trump trade war, says Christine Lagarde

ECB chief takes aim at claim that tariffs will ‘make America great again’ — but calls for negotiation, not retaliation
Christine Lagarde cautioned that a ‘trade war at large’ will lead to ‘a global reduction of GDP’ in her interview with the FT

Christine Lagarde has urged Europe’s political leaders to co-operate with Donald Trump over tariffs and buy more products made in the US, warning that an acrimonious trade war risks wiping out global economic growth.

The European Central Bank chief said in her first interview since Trump won his second presidential term that the EU needed “not to retaliate, but to negotiate” with a president-elect who has threatened a blanket tariff of up to 20 per cent on all non-Chinese US imports.

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