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,

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.

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. The U.S. has imposed a raft of tariffs on friends and foes alike and threatened even more measures,