Global Trade

ECB President Christine Lagarde warns Europe’s post-war economic growth pillars—global trade, affordable energy, and U.S. security—are eroding. Geopolitical shifts, trade restrictions, and a reduced US security role are creating instability. Lagarde urges Europe to learn from the AI revolution, avoid past tech missed opportunities, and implement reforms like “EU Inc.” to foster domestic growth and competitiveness.

President Trump has threatened a 100% tariff on goods from any country imposing digital services taxes on U.S. companies. This move highlights the growing international dispute over taxing the digital economy. Trump argues these taxes unfairly target American tech giants and has signaled a willingness to retaliate, potentially impacting global trade. The legality of such unilateral tariffs remains uncertain.