ECB president warns trade war with US could spark Euro zone inflation surge 

Christine Lagarde said EU retaliatory measures on US imports could lower euro zone growth by half a percentage point

Euro zone inflation could surge while growth would drop in the event of a full-scale trade war with the United States, European Central Bank President Christine Lagarde said on Thursday.

Euro zone inflation could surge while growth would drop in the event of a full-scale trade war with the United States, European Central Bank president Christine Lagarde said on Thursday.

A 25% tariff imposed by the US on imports from Europe would lower euro zone growth by about 0.3 percentage points in the first year, while retaliatory measures could increase this to about half a percentage point, Lagarde told European lawmakers in Brussels.