This photo taken on April 17, 2025 shows flags of the European Union in front of the European Central Bank (ECB) headquarters in Frankfurt, Germany. (Xinhua/Zhang Fan)

ECB staff will incorporate the U.S. trade deal into its September projections, which will guide monetary policy decisions in the coming months.

FRANKFURT, Aug. 20 (Xinhua) — European Central Bank (ECB) President Christine Lagarde on Wednesday urged Europe to tighten trade ties with countries other than the United States, saying the trade deal between the European Union (EU) and the U.S. has eased but not eliminated uncertainty.

Speaking at the International Business Council of the World Economic Forum in Geneva, Lagarde called on Europe to “deepen its trade ties with other jurisdictions,” even if the U.S. remains an important trading partner.

“Europe has a strong track record to build on. As the number one trading partner for 72 countries, the EU already has the largest network of trade agreements in the world,” she noted.

This file photo taken on June 6, 2024 shows an electric car at a charging station near the European Commission building in Brussels, Belgium. (Xinhua/Zhao Dingzhe)

On the EU-U.S. trade deal, Lagarde said the EU had avoided a worst-case scenario in which tariffs on European exports to the U.S. could have exceeded 20 percent. The effective average tariff is estimated at 12 to 16 percent, still higher than the rate before April.

“Recent trade deals have alleviated, but certainly not eliminated, global uncertainty, which persists on account of the unpredictable policy environment,” she said.

Despite tariff-related risks, the euro area economy has remained resilient. Lagarde attributed this to a frontloading effect, which saw strong export growth to the U.S., alongside robust private consumption and investment.

She said the ECB staff will incorporate the U.S. trade deal into its September projections, which will guide monetary policy decisions in the coming months.

A Euro sign is seen in Frankfurt, Germany, Jan. 18, 2024. Snow fell in Frankfurt on Thursday. (Xinhua/Zhang Fan) ■