European Central Bank President Christine Lagarde warned that the United States' imposition of a 25% tariff on European goods could reduce eurozone economic growth by 0.3% in the first year. If the European Union retaliates by imposing similar tariffs on US goods, this decline could increase to 0.5%.

Lagarde also indicated that these trade tensions could lead to an increase in eurozone inflation rates of about 0.5% in the short term, as a result of higher import costs and a depreciating euro.

Lagarde emphasized that these trade tensions are harming global growth and prosperity, noting that any escalation in trade disputes would negatively impact the entire global economy.