European Central Bank (ECB) President Christine Lagarde yesterday said that Europe should move toward economic independence as US President Donald Trump prepares to unleash a new wave of tariffs.
Trump has vowed to impose reciprocal tariffs on a wide range of trade partners tomorrow, which he has coined “liberation day,” saying the world’s top economy has been “ripped off by every country in the world.”
Lagarde told France Inter radio that Europe faces an “existential moment.”
Photo: AFP
“He calls it ‘liberation day’ in the United States. I see it as a moment when we must collectively decide to take greater control of our destiny and I think it is a step towards independence,” she said.
“To put ourselves in a position to negotiate effectively, we have to show that we won’t just roll over,” Lagarde said, as the EU readies its response to the tariffs.
The ECB estimates that Trump’s trade war could slash the eurozone’s economy by 0.3 percent in its first year — and by 0.5 percent if the EU retaliates.
“A trade war creates only losers,” Lagarde said.
Trump on Sunday said that the reciprocal tariffs he plans to impose would include “all countries,” not just those with the largest trade imbalances with the US.
The US president has already slapped tariffs on steel and aluminum imports and additional levies on imports from China.
Tariffs on imported autos are also due to take effect on Thursday.
The aggressive tariff scenario prompted Goldman Sachs Group Inc to lower its US and euro area GDP forecasts, as well as forecast that the US Federal Reserve and ECB would cut interest rates three times this year.
The investment bank now sees the Fed cutting rates in July, September and November, versus earlier bets on two cuts this year and one in 2026.
In a separate note, Goldman said lower EU growth forecasts reinforce expectations the ECB would cut rates this month and June, with a further quarter-percentage-point reduction now seen for July.
Additional reporting by Bloomberg
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced
Saudi Arabian Oil Co (Aramco), the Saudi state-owned oil giant, yesterday posted first-quarter profits of US$26 billion, down 4.6 percent from the prior year as falling global oil prices undermine the kingdom’s multitrillion-dollar development plans. Aramco had revenues of US$108.1 billion over the quarter, the company reported in a filing on Riyadh’s Tadawul stock exchange. The company saw US$107.2 billion in revenues and profits of US$27.2 billion for the same period last year. Saudi Arabia has promised to invest US$600 billion in the US over the course of US President Donald Trump’s second term. Trump, who is set to touch
SKEPTICAL: An economist said it is possible US and Chinese officials would walk away from the meeting saying talks were productive, without reducing tariffs at all US President Donald Trump hailed a “total reset” in US-China trade relations, ahead of a second day of talks yesterday between top officials from Washington and Beijing aimed at de-escalating trade tensions sparked by his aggressive tariff rollout. In a Truth Social post early yesterday, Trump praised the “very good” discussions and deemed them “a total reset negotiated in a friendly, but constructive, manner.” The second day of closed-door meetings between US Secretary of the Treasury Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng (何立峰) were due to restart yesterday morning, said a person familiar
RSS