ECB chief Lagarde warns Europe against US tariff retaliation
Christine Lagarde, President of the European Central Bank (ECB) speaks at the "Frankfurt European Banking Congress" in Frankfurt, Germany, Nov. 22. AP-Yonhap
European Central Bank (ECB) President Christine Lagarde has warned against taking retaliatory measures in response to potential new tariffs imposed by U.S. President-elect Donald Trump, in an interview to the Financial Times newspaper published on Thursday.
"We could offer to buy certain things from the United States and signal that we are prepared to sit at the table and see how we can work together," Lagarde said, according to a transcript of her interview published by the ECB.
She argued that such a "check book strategy" was preferable to a purely retaliatory approach.
Lagarde reiterated warnings about the consequences of a possible trade war with the U.S. By offering to purchase goods from the U.S., the Europeans could signal their readiness to negotiate and explore possibilities for cooperation.
A trade war would be "in nobody's interest, neither for the United States nor for Europe, or anyone for that matter," the ECB chief added.
The interview was conducted on Monday, before Trump announced his intention on Tuesday to impose tariffs of 25 percent on all imports from Mexico and Canada on his first day back in office. Trump's inauguration is due to take place on Jan. 20.
Throughout his election campaign, Trump had generally announced far-reaching tariffs, arguing that this would lead U.S. companies to increase domestic production and thereby create jobs. (DPA)