Speaking on the sidelines of the IMF-World Bank Spring Meetings, ECB President Christine Lagarde called for constructive negotiations to resolve rising US-EU trade tensions.
Addressing the recent escalation of tariff threats by US President Donald Trump, Lagarde expressed optimism that there remains room for dialogue.
“It’s in the nature of policymakers to want to sit down and argue their case,” she said, adding that identifying “red lines” and “vulnerabilities” on both sides would be essential to any successful outcome.
Lagarde pushed back against Trump’s claims that the EU treats the United States unfairly in trade, particularly due to the EU’s goods surplus. She emphasized that the transatlantic economic relationship is far more comprehensive, extending beyond goods to include services and substantial foreign direct investment flows. The broader context, she implied, should not be lost in the current tariff rhetoric.
While acknowledging that certain sectors may require tough discussions, Lagarde stressed the importance of shared economic interests. “There is so much joint interest,” she noted, emphasizing the need for “tedious, serious work” to find acceptable compromises.
