Christine Lagarde, the incoming President of the European Central Bank has denounced the economic policies of Donald Trump. The statements from Lagarde were made during an interview with CBS News 60 minutes.
During the interview, Lagarde was asked for her opinion on the actions and influence of Donald Trump on the world markets. Lagard stated that Trump “has many keys that would unlock the uncertainty and the risks.” When pressed to elaborate on the risks Lagarde responded:
“I think the biggest key that President Trump has is in relation to predictability and, and certainty of the terms of trade. It’s the unknown which is hurting because you can’t adjust to the unknown. So what do you do? You build buffers. You build savings. You wonder what comes next. That’s not propitious to economic development.”
Lagarde’s comments on trade were seemingly directed at Trump’s long line of tariffs that were enacted on foreign powers, in particular on China.
The tariffs began in March 2018 with a $50 billion memorandum on Chinese goods. The tariffs were said to be in retaliation for the alleged theft of US intellectual property.
A further set of tariffs was made in April 2018 which targeted 1,300 consumer goods. This time China said that it was left to option but to “fight back” against the alleged wrongdoing by Trump.
The tit for tat trade war between the United States and China continued up until the G20 Summit held in June this year. At the summit, Trump stated that he would suspend a further $300 billion worth of tariffs that had been in consideration over previous months.
The latest development in the trade war between the US and China was Trump asserting that China had agreed to buy a “tremendous amount” of American farm products, although there have been no explicit commitments announced by either country.