Transcript: Christine Lagarde on "Face the Nation with Margaret Brennan," Oct. 19, 2025

The global economy is undergoing significant transformation due to various factors, including tariffs and the impact of artificial intelligence on trade and data management.

According to European Central Bank President Christine Lagarde, the rise of tariffs has altered the map of trade around the world and led to new alliances forming. The tariffs imposed by the US have had a substantial effect on global businesses, with S&P Global forecasting that Trump's tariffs will cost global businesses upwards of $1.2 trillion this year.

Lagarde stated that although some economists may have underestimated the impact of the tariffs, she believes the effects are yet to be felt. She highlighted how the additional 11 percentage points in tariff rates from 1.5% to 13% would put a squeeze on exporters' and importers' margins before it is passed on to consumers.

The ongoing trade tensions between the US and China pose another significant threat to the global economy, with rare earth exports being a key point of contention. The European Central Bank President emphasized the need for countries like the US and Europe to join forces in opposing China's leverage over other nations.

In a broader context, Lagarde expressed concerns about the erosion of trust in the dollar as a safe-haven currency due to the rise of cryptocurrencies and gold prices increasing by more than 50% since the beginning of the year. The shift in capital flows towards other destinations, including Europe, has further eroded confidence in the reserve currency.

To mitigate these risks, Lagarde stressed the importance of strong institutions, geopolitical credibility, and a credible environment for trading. A robust monetary policy framework is essential to maintain economic stability. She also highlighted the need for countries to work together on issues like Ukraine and fair use of frozen Russian assets.

The interview with Christine Lagarde highlights the complexities of the global economy in today's rapidly changing world.

I'm getting a bit worried about all these trade tensions and tariffs, you know? It feels like it's gonna be a super tough year for businesses . And what really gets me is that some of it's just based on politics... I mean, who benefits from this stuff? Not the average person, that's for sure. We're all gonna get hit with higher prices and whatnot .

I'm worried about how all this trade tension stuff is gonna affect people's jobs. I know some folks say it's necessary to keep our economy strong, but what about those who work in industries that are hit by tariffs? My grandkids are getting into the workforce now and I want them to have a solid future, not one that's uncertain because of someone else's politics.

I'm also curious about this whole cryptocurrency thing. Christine Lagarde mentioned it in her interview, but I don't really get it. Is it gonna be the new safe-haven currency? What are the implications for people who save their money or invest?

It seems to me that we need some kind of international cooperation on these issues, like she said. But how do you get all those countries to agree on something when everyone's got their own interests? It's not gonna be easy, but someone's gotta try.

I'm just glad I've got my pension now, haha! At least I'll be set for a while .

Ugh, forum notifications are driving me crazy Can't they just turn them off when I'm trying to read a decent article? Anyway, back to the news... this whole tariff thing is getting out of hand . I mean, $1.2 trillion that's like, half of global GDP or something . And now China is throwing some shade too? This trade war stuff is just gonna keep going on forever, and who knows what the final score will be?

And don't even get me started on this whole dollar crisis thing . Cryptos are taking over, gold prices are through the roof... I'm starting to think we're living in some kind of alternate reality . But seriously, if countries can't work together on something as simple as trade policies, how do they expect to tackle anything more serious like climate change or poverty?

I gotta say, the idea of new alliances forming due to tariffs is a bit of a stretch for me ... I mean, who really benefits from all this trade drama? And what's up with these massive numbers - $1.2 trillion? That's just crazy talk . I'm not saying it's not real, but are we sure we fully understand the impact on global businesses and economies? I'm still waiting for some concrete data to back it out .

And let's not forget about cryptocurrencies and gold prices going up... yeah, that's all well and good, but can they really replace the dollar as a safe-haven currency? It feels like we're just seeing another bubble form . Strong institutions and geopolitical credibility are important, don't get me wrong, but isn't it time for some actual proof of concept rather than just promises?

I'm not convinced that a $1.2 trillion hit from Trump's tariffs is going to be as big of a deal as S&P Global says it will be I mean, companies are used to navigating trade fluctuations and have contingency plans in place. And what about the actual impact on inflation? Is it just going to get absorbed by consumers or is there a bigger ripple effect? Not enough info for me

I mean, $1.2 trillion is crazy! Can you even imagine how that'd affect a small business? It's like, they're already struggling to make ends meet, and then this tariff thing hits them right in the wallet . And what really gets me is how it affects everyday people, not just businesses. I feel like we need some sort of global economic safety net or something...

I'm loving how this whole tariff thing is making everyone rethink their trade strategies. It's crazy how it's changed the map of global business overnight . And I gotta say, $1.2 trillion lost to Trump's tariffs? That's a lot of benjamins . But what really gets me is how it's highlighting the need for countries to put aside their differences and work together on these issues like trade wars and geopolitical credibility .

It's also interesting to see how Lagarde is speaking up about cryptocurrencies and gold prices going through the roof . It's like, can we just have one stable currency for once? But seriously, it shows that the world is moving in a new direction and we need to adapt fast .

I'm also loving how she's calling out China's leverage over other nations . Like, we get it, China's got some serious economic might, but can't we all just get along? It's gonna be interesting to see how this all plays out in the coming years .

I remember when we used to talk about global trade without all these tariffs, it was like, a whole different world . Now it feels like everyone's got an axe to grind and no one wants to play nice anymore. I'm not saying I agree with everything Christine Lagarde says, but she's right on the money when it comes to how these tariffs are going to affect people. $1.2 trillion? That's just crazy talk! And what's with this 'safe-haven currency' business? I mean, isn't that just code for 'we can't trust the dollar anymore'? And what's the plan to stop China from getting all up in everyone's grill? It feels like we're just spinning our wheels over here...

im thinking, tariffs are a big deal right now . 1.2 trillion is a lot of money, it makes me wonder how many jobs could be saved if us china trade tensions ease up some. and what about european countries? they gotta find ways to stay competitive too. lagarde seems like a smart person, maybe she's onto something with the need for global cooperation . but it's not all bad news, i'm hoping crypto gets more legit so ppl can invest in safer places

Wow , tariffs are seriously impacting the global economy! $1.2 trillion is a huge number . I'm not surprised economists didn't see it coming tho . And with China and US trade tensions still going on , it's like, how do countries protect their interests? Interesting

Tariffs are gonna cost us all some serious cash this year . I mean, $1.2 trillion is no joke! It's gonna be a tough time for businesses and consumers alike . I'm not surprised by Lagarde's comments though, she seems like someone who's been in the game for a while . What really worries me is this whole thing with China and rare earth exports... it's like a domino effect . And what about cryptocurrencies? Is our dollar gonna be worth anything soon?

I dont think its fair to say tariffs are just a US thing , they affect everyone globally. And yeah China is strong but we cant be anti-China all the time . We need to find ways to work with them too. I mean, Europe and US have been at each other's throats for years over trade, so now its time for some unity . Cryptocurrencies are a thing now, we gotta adapt . The Euro is still strong, let's not count it out just yet . We should be focusing on the bigger picture, economic stability and stuff like that . Strong institutions and all that jazz .

Dude, I'm getting these serious FOMO vibes about the state of the global economy right now . Like, $1.2 trillion? That's crazy talk! And this trade tension thing between the US and China is like a bad Marvel movie - it never ends .

But for real though, Christine Lagarde's got some solid points. I mean, we can't just sit back and wait for these tariffs to get passed on to consumers . We need to start working together as countries to address these issues before they become a thing of the past.

And can we talk about the dollar for a sec? It's like, it used to be this safe-haven currency or whatever, but now it's like...what's up with that? Cryptocurrencies and gold prices going through the roof - it's like the old guard is getting left behind .

Anyway, I think Lagarde's on to something here. We need some strong institutions in place to mitigate these risks, and countries gotta work together to maintain economic stability. It's time for us to get our act together, folks!

I think it's kinda weird that people are worried about tariffs affecting $1.2 trillion... I mean, is that really that much money? Like, what if the world just becomes a more connected place and all this tariff drama gets sorted out? But at the same time, Christine Lagarde makes some good points about the impact on exporters and importers... maybe we should be supporting those guys instead of bickering over trade policies? And what's up with these rare earth exports between the US and China? Can't they just have a nice cuppa tea or something and sort it out over a diplomatic breakfast table? ️ But Lagarde is right about strong institutions and credibility being key... that makes sense, I guess .

Tariffs are just a start, you think $1.2 trillion is a lot? That's just the beginning... I mean, what's next? A global recession? Or worse? And don't even get me started on these "new alliances" forming - just a bunch of countries trying to protect their own interests and stab each other in the back at the same time. It's like a big game of economic chess, and we're all just pawns waiting to be sacrificed. The rise of AI is just making things worse, what's next? Robots taking our jobs and owning everything?

Tariffs are getting crazy! Like, who needs that much stress? The US-China trade wars are making everyone's life harder, and it's affecting businesses worldwide. $1.2 trillion is a lot of money, dude... I'm just waiting for the global economy to catch up with AI advancements , so we can move forward without all these trade headaches .

Lagarde seems super worried about the dollar losing its value and countries relying on other currencies . I get it, crypto is changing the game , but let's keep trading in dollars for now . The Europeans need to team up with the US on China issues , and we should all focus on Ukraine peace . It's time for strong institutions and solid policies !

just thinkin' about this trade stuff... it's crazy how one country's actions can affect so many others . tariffs are just adding to the complexity, like a puzzle with missing pieces. i wonder if we'll ever find a way to balance business interests with fair competition . what do u guys think? is global unity even possible in this day & age?