ECB president: Europe should move towards economic independence in the face of US tariffs

European Central Bank President Christine Lagarde said Europe should move toward economic independence as the Trump administration in the U.S. launches a new round of tariff wars.

The Trump administration's reciprocal tariffs are expected to come on Wednesday, which the president has called "Liberation Day" for the United States. Lagarde told France Inter radio on Monday that Europe is facing a "moment of life and death."

"He (Trump) calls it liberation Day in the United States, but I think it is the moment when we (Europe) have to decide together to take better control of our own destiny," Lagarde said. I think it's a step toward independence."

The EU is preparing a response to the US tariffs. Bloomberg recently reported, citing people familiar with the matter, that the United States has not yet proposed tariffs on the EU, but EU officials believe it will be in the range of 10 to 25 percent.

The European Central Bank estimates that Mr Trump's trade war could shrink the eurozone economy by 0.3 per cent in the first year; If the EU retaliates, that number could rise to 0.5%.

Lagarde said the EU must show an unyielding attitude in possible negotiations. "A trade war will only create losers," she added.