Lagarde: The global economy has not yet felt the impact of Trump’s tariffs

European Central Bank President Christine Lagarde said connected Sunday that the planetary system “has not yet felt the pain” from the tariffs imposed by U.S. President Donald Trump.

Speaking connected CBS’s “Face the Nation,” Christine Lagarde said that sooner oregon aboriginal exporters and importers volition halt accepting the simplification successful nett margins caused by the tariffs and determine to rise prices.

“These two-thirds of the costs, which are fundamentally borne by 2 sides – the exporter and the importer – are based connected squeezing their margins,” helium said. “The question is: however agelong tin they prolong this compression? When they can’t anymore, due to the fact that the margins volition beryllium excessively tight, past the load volition beryllium passed connected to the consumer. It’s conscionable a substance of time.”

Lagarde told CBC newsman Margaret Brennan that tariffs are 1 of 2 cardinal factors that person driven the planetary system into a “transformation” phase. The other, she said, is advances successful technology.

“The transformation,” she said, “is caused by 2 things. First, by tariffs, which person changed the representation of planetary trade, creating caller alliances and transforming the mode we commercialized with each other. And second, by the interaction of artificial intelligence, which is affecting everything from information absorption to adjacent … flirting and everything successful between.”