Doha: European Central Bank (ECB) President Christine Lagarde emphasized the need for Europe to strengthen its trade relationships with partners outside the United States. She highlighted the importance of diversifying trade connections to enhance the export-oriented nature of Europe's economy, during her address at the International Business Council of the World Economic Forum in Geneva.

According to Qatar News Agency, Lagarde acknowledged the United States as a significant trading partner but underscored the potential benefits of expanding trade ties beyond the US. She pointed out that a recent trade agreement has established an effective average tariff ranging from 12% to 16% on US imports of euro area goods, with a baseline levy of 15% affecting most goods.

Lagarde noted that while recent trade agreements have reduced some global uncertainty, they have not entirely eliminated it. She expressed concerns over the unpredictable policy environment, particularly regarding sector-specific tariffs on pharmaceuticals and semiconductors, which remain undefined.

ECB staff are set to incorporate the effects of the trade deal on the euro area economy into the upcoming September projections. These projections will play a crucial role in guiding the central bank's policy decisions in the months to come.