Christine Lagarde, President of the European Central Bank, has called on the United States to avoid engaging in trade wars. She emphasized the importance of fair trade for growth, employment, innovation, and productivity.

Lagarde pointed out that historical periods of U.S. prosperity were associated with trade rather than isolationist policies. While acknowledging concerns about China's trade practices, she stressed the need for fair trade conditions and cautioned against opaque subsidies that distort the market.

Lagarde also noted that a proposed blanket 20 percent tariff could have negative consequences for European exporters. The International Monetary Fund has identified protectionism and escalating trade conflicts as significant threats to the global economy. Although the IMF predicts a 3.2 percent growth for the world economy this year, it has slightly revised its forecast for next year down to 3.3 percent. The ongoing trade tensions could worsen economic challenges, particularly for Europe, which may face increased competition from Chinese exports if U.S. tariffs are imposed.