A trade war unleashed by US President Donald Trump would have far-reaching economic consequences for the initiators too, according to European Central Bank President Christine Lagarde. "If we were to go to a real trade war,

Olli Rehn, an ECB policymaker, said that the U.S. administration must be encouraged to avoid leveraging "unnecessary and very harmful" tariffs on Europe through a negotiations solution. "The simple conclusion is that we should aim at a negotiated solution,

ECB’s Lagarde warns Trump’s trade war could hit global growth, inflation. She indicates that escalating tariffs risk severe economic consequences, while stressing the ECB’s challenge in stabilising inflation amid record-high uncertainty.

Christine Lagarde, president of the European Central Bank (ECB), has warned that Trump’s trade policies are dragging the world economy toward a major recession. She pointed to escalating trade tensions and unpredictable tariff battles as major risks,