Europe Braces for Trade Tensions Amid Potential Trump Tariffs

Christine Lagarde, head of the European Central Bank, has urged European leaders to negotiate with President-elect Donald Trump and increase purchases of American products to avoid a trade war that could harm global economic growth. Lagarde suggests a "cheque-book strategy" to buy US goods like liquefied natural gas and defense equipment, rather than retaliating against Trump's proposed tariffs on non-Chinese imports. She emphasizes the need for Europe to transform this challenge into an opportunity to boost its economic competitiveness.