In a speech to a top-level banking conference in Helsinki, Christine Lagarde said the impact of Trump’s trade war on eurozone economies had also been eased because of a stronger euro and the trade deal the EU negotiated with Trump that capped tariffs at 15%. This enabled Europe to continue importing raw materials and goods needed while keeping its economy free from the high tariff costs and/or bottlenecks that might otherwise have raised prices. “As a result, we have not yet seen significant supply chain disruption,” Lagarde said. Growth, however, remains mediocre, coming in at only 1.1% in the second quarter, which is above the rate of the previous quarter. Tariffs and associated uncertainty are expected to reduce performance by approximately 0.7% through 2025 and 2027.