Geneva — August 2025 European Central Bank President Christine Lagarde has called for a recalibration of Europe’s trade strategy in response to shifting global dynamics and rising tariff pressures. Speaking at the World Economic Forum’s International Business Council, Lagarde noted that while early-year growth was buoyed by preemptive stockpiling ahead of tariff hikes, the euro area now faces headwinds as those effects fade.
She emphasized the need for Europe to expand its trade partnerships beyond traditional allies, citing the continent’s robust export infrastructure and its position as the top trading partner for dozens of countries. Lagarde also highlighted the resilience of the eurozone labor market and consumer spending but warned that sector-specific tariffs—particularly in pharmaceuticals and semiconductors—could pose risks to future growth. The ECB is expected to factor these developments into its September economic projections.
Source: European Central Bank