| European officials are amplifying their concerns that the US will head down a path of even more trade protectionism. The latest voice was European Central Bank President Christine Lagarde, who on Tuesday challenged former President Donald Trump's campaign platform by defending the importance of international commerce. Attending meetings of the International Monetary Fund and World Bank this week in Washington, she pushed back against his campaign promises to raise tariffs on the expectation it will help the American economy. "Fair trade is a key boost for growth, for employment, for innovation, for productivity," Lagarde said in an interview with Bloomberg Television's Francine Lacqua. "It's something that we should not throw away because in any period of time where this country, the United States, has thrived were periods of trade — not periods of 'I'm going to retire behind my boundaries and play at home.' No." Video: ECB's Lagarde Defends Fair Trade in the Face of Tariffs The Republican candidate has pledged to impose goods tariffs of 60% on China and as much as 20% on everyone else. Such measures, if implemented, would introduce the biggest trade shock since the Smoot-Hawley Act that deepened the Great Depression of the 1930s, some economists say. In a new report, the IMF lowered its global growth forecast for next year and warned of accelerating risks from wars totrade protectionism. Lagarde has previously warned that the global nature of the euro area's economy makes it highly vulnerable to systemic shocks from supply chain disruptions. Also Tuesday, data for September showed car sales in Europe fell for the first consecutive monthly decline in more than two years as the region's economy continued to stagnate and consumers trimmed spending. Volvo Car's CEO told Bloomberg Television that he sees a softening in the auto market due to a number of factors, including inflation pressures, a slower-than-expected rollout of fast-charging infrastructure for electric vehicles, as well as trade tariffs. Related Reading: - At a rally in North Carolina, Trump touted his pledge to provide tax breaks for purchasing cars, highlighting that the benefit would only apply to vehicles made in the US.
- Goldman Sachs said the euro could drop as much as 10% versus the dollar if Trump and the Republicans win next month's US elections and enact high global tariffs and generous domestic tax cuts.
- Central bankers losing sleep over Europe's souring economies have another worry looming large: how much more damage Trump could cause if he returns to the White House.
- The outcome of the upcoming US election is a vote on the future of liberal democracies and Western values around the world, according to Germany's Finance Minister Christian Lindner.
—Brendan Murray in London Click here for more of Bloomberg.com's most-read stories about trade, supply chains and shipping. | 
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