ECB chief Lagarde warns uncertainty is back as Trump targets Europe

ECB's Lagarde: Trade Uncertainty "More Hurtful" Than Tariffs

Speaking at Davos, Christine Lagarde warns that U.S. tariff threats could stall global investment and hiring.

European Central Bank (ECB) President Christine Lagarde warned at the World Economic Forum in Davos that uncertainty has returned due to tariff threats from U.S. President Donald Trump. She emphasized that the psychological impact on investors is more damaging than the actual trade barriers.

"If companies, investors, and markets do not know what will happen next, they will probably delay plans to invest, hire, or adopt trade policies."

Economic Impacts

Investment Stall: Companies are already cutting back on spending, risking a European slowdown.
Inflation Risks: Increased import costs could make it harder for the ECB to maintain price stability.

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