Christine Lagarde, president of the European Central Bank (ECB), has warned that Trump’s trade policies are dragging the world economy toward a major recession. She pointed to escalating trade tensions and unpredictable tariff battles as major risks,

European Central Bank President Christine Lagarde warned that an escalation of disputes over trade levies kicked off by US President Donald Trump may have a detrimental effect on the world economy.

A full-scale global trade war would hurt the United States in particular and could re-energise Europe's push towards unity, European Central Bank President Christine Lagarde said on Friday.

ECB’s Lagarde warns Trump’s trade war could hit global growth, inflation. She indicates that escalating tariffs risk severe economic consequences, while stressing the ECB’s challenge in stabilising inflation amid record-high uncertainty.