Christine Lagarde warns: New US tariffs could press European inflation

Christine Lagarde warns: New US tariffs could press European inflation
inflation in Europe and the effects of new US tariffs
Christine Lagarde, the President of the European Central Bank (ECB), commented on the potential effects of new US tariffs on the European economy on Wednesday in Washington. Lagarde emphasized that these tariffs could possibly reduce inflation in Europe if the European Union (EU) positions itself.
The introduction of new tariffs in the USA could have various effects on price development in Europe. As a rule, customs measures can influence international trade and thereby change the costs for imported goods. If the prices for certain products rise due to the tariffs, this could lead to European companies adjusting their prices to remain competitive. In this context, inflation in the EU could be possible, especially if the EU focuses on cheaper alternatives.
The events in the international markets and the reactions of the EU to the US tariffs are decisive factors that can affect the future development of inflation in Europe. It remains to be seen how this situation will develop and what measures the ECB and the EU take to react to the challenges in international trade.