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.

If we were to go to a real trade war where trade would be dampened significantly, that would have severe consequences,' she told the BBC.

"If we were to go to a real trade war, where trade would be dampened significantly, that would have severe consequences," European Central Bank President Christine Lagarde said.

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,