On the 31st (local time), two days before President Donald Trump's announcement on reciprocal tariffs, Christine Lagarde, President of the European Central Bank (ECB), argued that Europe must move toward economic independence.
According to AFP and others on the 31st, President Lagarde appeared on Radio France Inter and said, "There are two days left until the huge geopolitical and geoeconomic changes decided by the US President," adding, "From the perspective of Europe and France, this is seen as a step toward independence."
She mentioned the defense, energy, and financial sectors, stating, "Europe is at an existential moment. To secure a position to negotiate effectively, it must show that it will not back down easily." She also reiterated forecasts that trade conflicts with the US could reduce the Eurozone (20 countries using the euro) economic growth rate by up to 0.5 percentage points, pointing out that "trade wars only create losers."
The ECB predicts that if the US applies a 25% tariff on European imports, the Eurozone's economic growth rate will decrease by 0.3 percentage points in the first year, and if the EU retaliates with the same tariff rate, it will decrease by 0.5 percentage points.
Earlier, President Trump announced plans to impose a 25% tariff on European imports, including automobiles. In retaliation for the US's 25% tariffs on steel and aluminum, which took effect on the 12th, the EU decided to impose tariffs of up to 50% on American whiskey and other products starting next month.
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