EU banking chief urges bloc to boost US imports amid Trump tariff threats

The president of the European Central Bank, Christine Lagarde, has urged EU countries to increase imports of U.S. products to avoid a trade war following Donald Trump's renewed tariff threats. She emphasized the need for negotiation rather than retaliation. Lagarde's comments come as Trump proposes tariffs of up to 20% on non-Chinese imports, which could impact the EU's trade surplus with the U.S. She suggested a "cheque-book strategy" to counter these threats by boosting purchases of U.S. goods. The European Commission is exploring ways to mitigate potential fallout, including aligning trade policies with the U.S. and offering access to EU-funded defense procurement. Lagarde described the situation as a challenge for Europe to reassess its economic priorities.