ECB President Advocates Strengthened Trade Relationships Beyond U.S.
On August 20, 2025, European Central Bank (ECB) President Christine Lagarde emphasized the necessity for Europe to enhance its trade relationships with non-U.S. countries, stating that the trade deal between the European Union (EU) and the United States has mitigated but not resolved overall uncertainty, reports 24brussels.
Speaking at the International Business Council of the World Economic Forum in Geneva, Lagarde urged Europe to deepen connections with a broader range of partners while acknowledging the significance of the U.S. as a trading ally. “Europe has a strong track record to build on. As the number one trading partner for 72 countries, the EU already has the largest network of trade agreements in the world,” she declared.
Discussing the EU-U.S. trade agreement, Lagarde pointed out that the EU successfully averted a dire scenario where tariffs on European exports to the U.S. could have surpassed 20 percent. Currently, the average effective tariff ranges between 12 to 16 percent, which remains above pre-April levels.
“Recent trade deals have alleviated, but certainly not eliminated, global uncertainty, which persists on account of the unpredictable policy environment,” she noted. Despite the challenges associated with tariffs, Lagarde remarked on the resilience of the euro area economy, attributing it to a frontloading effect characterized by robust export growth to the U.S., alongside healthy private consumption and investment.
Looking ahead, Lagarde indicated that ECB staff plans to factor the U.S. trade deal into their September economic projections, which will inform monetary policy decisions in the coming months.
