A full-scale global trade war would hurt the United States in particular and could re-energise Europe's push towards unity, European Central Bank President Christine Lagarde said on Friday.

If we were to go to a real trade war where trade would be dampened significantly, that would have severe consequences,' she told the BBC.

Christine Lagarde (pictured) said it was 'impossible' to guarantee that policymakers would meet a 2% inflation target in the short term.

The euro zone economy is facing exceptional shocks from trade, defence and climate issues, possibly amplifying inflation volatility and raising the risk that price growth becomes more persistent, ECB President Christine Lagarde said on Wednesday.

ECB’s Lagarde warns Trump’s trade war could hit global growth, inflation. She indicates that escalating tariffs risk severe economic consequences, while stressing the ECB’s challenge in stabilising inflation amid record-high uncertainty.

Christine Lagarde, president of the European Central Bank (ECB), has warned that Trump’s trade policies are dragging the world economy toward a major recession. She pointed to escalating trade tensions and unpredictable tariff battles as major risks,