The President of the European Central Bank, Christine Lagarde, He warned that international trade would change forever from the tensions created by Donald Trump’s duties, even if some of the world’s top economies are heading for some compromises.

‘While it is quite obvious that International trade will never be the same again, It is also quite clear that there will be further negotiations“, The ECB president said in an interview with Canadian Broadcasting Corp. On the sidelines of the meeting in Canada by the heads of the Economic and Central Banks of the Seven Group (G7).

‘There will be further moves On behalf of all partners in commerce, so that the significant imbalances we have and we have had for a long time, “Lagarde said.

Speaking in a separate interview with Radio-Canada, the ECB president said that The impact of duties on inflation is difficult to appreciate from the central bank. There may be inflation If Europe’s retaliation increases import costs but in the short term they could also exist deflationary impulses If there is a diversion of cheap Chinese products in European markets, he said.

“The issue of the impact of duties on inflation is very thin,” Lagarde said. “There are many elements that are moving right now and we will be able to appreciate the impact as negotiations are moving and as this new framework evolves.”

In the eurozone, inflation was maintained at 2.2% in April due to stronger underlying pressure. However, analysts predict reversal in May – possibly pushing inflation even below the 2% goal of the ECB. The European Commission expects it to be on average at 1.7% next year.

ECB officials are widely expected to reduce borrowing costs in two weeks, with inflation heading for 2% and US duties affecting the economy. This would be the eighth reduction since June last year, raising the basic deposit rate to 2%.