On January 22, European Central Bank President Christine Lagarde expressed skepticism about U.S. President Donald Trump's strategy to boost domestic manufacturing through increased trade barriers. Lagarde highlighted that the U.S. economy is currently operating at near-full capacity, stating, "This theory of substitution, in other words that I will lower imports from Europe to beef up manufacturing at home, is questionable, because the U.S. economy ... is almost running hot at the moment," in an interview with CNBC at Davos. She pointed out that with low unemployment and constrained capacity, establishing additional manufacturing capacity would be a time-consuming process.