PARIS: European Central Bank president Christine Lagarde said today that Europe should move towards economic independence as US President Donald Trump prepares to unleash a new wave of tariffs.

Trump has vowed to impose reciprocal tariffs on a wide range of trade partners on Wednesday, which he has coined “Liberation Day”, saying the world’s top economy has been “ripped off by every country in the world”.

Lagarde told France Inter radio that Europe faces an “existential moment”.

“He calls it ‘Liberation Day’ in the US. I see it as a moment when we must collectively decide to take greater control of our destiny and I think it is a step towards independence,” she said.

“To put ourselves in a position to negotiate effectively, we have to show that we won’t just roll over,” Lagarde added, as the EU readies its response to the US tariffs.

The ECB estimates that Trump’s trade war could slash the eurozone’s economy by 0.3% in its first year – and by 0.5% if the EU retaliates.

“A trade war creates only losers,” Lagarde said.