Europe must prepare for tariffs from the USA, says Christine Lagarde, head of the European Central Bank (ECB) to CNBC.
What we need to do here in Europe is to be prepared and foresee what will happen in order to respond to it, she says on site in Davos in connection with the World Economic Forum.
Newly inaugurated President Donald Trump stated at a press conference that EU countries can expect tariffs, but was not more specific than that. According to Trump, the EU has treated the USA "very badly".
Lagarde, however, expects the tariffs to be more "selective".
Besides threats of tariffs against the EU, Donald Trump has also warned of tariffs against neighboring countries Mexico and Canada, as well as China.
