Lagarde urges Europe to engage with Trump on trade to prevent conflict

Christine Lagarde, head of the European Central Bank, has urged European leaders to cooperate with President-elect Donald Trump on trade. She emphasized the need for negotiation rather than retaliation to avoid a damaging trade war that could harm global economic growth. Lagarde suggested that Europe should increase purchases of U.S. products, such as liquefied natural gas and defense equipment, as a strategy to mitigate potential tariffs. This approach contrasts with a purely retaliatory stance, which could escalate tensions. She also highlighted the importance of reforming Europe’s economy to enhance competitiveness. Lagarde called for swift action on creating a unified capital market in Europe, which has faced delays due to domestic opposition.