Europe braces for economic war with America

European Central Bank chief Christine Lagarde says Trump is "clearly a threat" to Europe and "Europeans should be prepared." Will anyone listen?

Over the years, presidents of the European Central Bank have always been very careful with their words. The slightest utterances are painstakingly parsed for meaning, which is why the three little words “whatever it takes” from former ECB chief Mario Draghi landed like an earthquake on the financial markets in 2012. So it was surprising to see the current ECB chief, Christine Lagarde speak with such candor to CNN on Monday about what Trump taking power in Washington could mean for the European economy.

“There could be threats and there could be issues for which the Europeans should be prepared,” she said. “Let us prepare for potential tariffs, for potential harsh decisions that would be unexpected. Let us be strong at home.” She was reiterating comments she made to French television earlier this month, when she said Trump is “clearly a threat” to Europe. “You just have to look at the customs tariffs, you just have to look at the commitment to serve NATO, you just have to look at the fight against climate change,” she said in that interview. “In just these three areas, in the past, American interests have not been aligned with European interests.”