Speaking in a CNBC interview on the sidelines of the World Economic Forum (WEF) annual meetings in Davos on Wednesday, European Central Bank (ECB) President Christine Lagarade said that “no US tariff is what I expected, a smart approach.”

She added that “doesn’t mean to say it won’t happen, will be more selective.”

Additional quotes

Not surprised by Trump’s tariff threats.

Europe must be prepared and anticipate what will happen in order to respond.

We’re confident euro zone inflation will be at target over the course of 2025.

We’re not overly concerned about export of inflation to Europe.

Exchange rate will be of interest, may have consequences.

Market reaction

EUR/USD was last seen trading 0.11% lower on the day at 1.0415.

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