Christine Lagarde Warns Consumers Will Soon Bear Full Tariff Impact
ECB President Christine Lagarde warns that consumers are
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European Central Bank President Christine Lagarde has warned that American consumers haven't yet experienced the complete financial impact of tariffs. In a recent interview, she explained that tariffs from the Trump era have increased costs for European goods by 1.5% to 13%. Currently, businesses are absorbing about two-thirds of these additional costs by reducing their profit margins.
However, Lagarde questioned how long companies can continue this practice. She predicted that once businesses can no longer absorb these costs, consumers will face higher prices. This matches research from Goldman Sachs showing consumers currently pay 37% of tariffs, but this could rise to 55%.
Lagarde also discussed broader economic changes, noting that the US dollar's global appeal is slightly weakening, supported by rising cryptocurrency use and gold prices increasing over 50% this year.
Original Article
benzinga.comhttps://www.benzinga.com/markets/economic-data/25/10/48295091/christine-lagarde-sounds-warning-on-trump-tariffs-question-of-time-before-consumers-feel-fu