Lagarde, ECB President: "Instead of Retaliation Against Trump, Increase Purchases of American Products"

Proposal to Expand US LNG and Arms Purchases in the EU
"Negotiation, Not Retaliation"
Trump's Trade War Warns of Global Growth Rate Decline

Christine Lagarde, President of the European Central Bank (ECB), stated that instead of directly confronting the tariff and trade war initiated by President-elect Donald Trump of the United States, the EU should respond with a negotiation strategy that increases purchases of American-made products.

In an interview with major foreign media on the 28th (local time), Lagarde said that the EU should "negotiate rather than retaliate" in response to the second Trump administration.

She urged responding to Trump's second term by proposing the purchase of specific products such as liquefied natural gas (LNG) and defense equipment from the United States. She explained, "This is a better scenario than a pure retaliation strategy," adding, "A pure retaliation strategy can lead to revenge without any true winners."

Earlier, President-elect Trump had pledged during his candidacy to impose a universal tariff of 10-20% on all imports and a uniformly high tariff of 60% on imports from China. This has raised concerns in Europe about a reduction in the trade surplus with the US and the possibility of manufacturers relocating production bases to America.

However, she warned that Trump’s America First policy could hinder global economic growth.

Lagarde criticized, "An overall trade war benefits no one," and said, "It will lead to a decrease in global gross domestic product (GDP)." Regarding Trump’s campaign slogan 'Make America Great Again (MAGA),' she questioned, "How can America be made great again when global demand is declining?"

The European Union (EU) Commission is deliberating on countermeasures against the protectionism that the second Trump administration is expected to pursue. They are considering increasing purchases of American agricultural products, LNG, and weapons. Additionally, they are considering allowing American companies to participate in military procurement projects funded by the EU and cooperating more closely with the US in containing China.