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25 April, 2024
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Lagarde warns of potential economic threats to Europe under possible Trump return

Tensions underscore EU's heavy reliance on trade with US


In a recent exclusive interview with CNN's Richard Quest, European Central Bank President Christine Lagarde cautioned Europe to brace itself for potential economic challenges, including the specter of new tariffs on exports, should Donald Trump secure a return to the White House.

According to CNN, Lagarde highlighted the tumultuous transatlantic relationship during Trump's previous tenure, citing trade tensions that resulted in retaliatory tariffs between the United States and the European Union. These tensions underscored the EU's heavy reliance on trade with the US, a cornerstone of its $16 trillion economy.

The prospect of a second Trump presidency has European officials contemplating strategies to safeguard against potential repercussions, ranging from trade policies to geopolitical alliances. Trump's early successes in the Republican primaries have fueled speculation about his electoral prospects.

The EU, recognizing the significance of the US as its largest source of foreign direct investment, seeks to fortify itself against the uncertainties of a second Trump term. Lagarde advocates for strengthening the EU's single market, emphasizing the importance of integrated financial markets and harmonized professional qualifications across member states.

Lagarde reiterated her earlier assertion that Trump's re-election poses a tangible threat to Europe, citing past policies as indicators of potential future challenges. As Europe braces for potential economic headwinds, Lagarde underscores the imperative of fortifying its economic foundations in preparation for an uncertain geopolitical landscape.

[With information sourced from CNN]

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