The president of the European Central Bank said Sunday that the world’s economy has “yet to feel the pain” from President Donald Trump’s tariffs.

Speaking on CBS’ “Face the Nation,” Christine Lagarde said that at some point the exporters and importers will no longer accept smaller profit margins caused by tariffs and decide to raise prices.

“These two-thirds borne by two corporates, essentially, the exporter and the importer, is based on a squeeze of their margins,” she said. “How long are they going to put up with a squeeze of the margin — to be seen. And when they don’t, because it’s becoming too tight, then it will be on the consumer. So it’s a question of time.”

Lagarde told host Margaret Brennan that tariffs were one of two factors that have led to the global economy being “in transformation,” the other being advancements in technology.

“Transformation,” she said, “I think caused by a couple of things. One is the tariffs, which have changed the map of trade around the world and reconstituted new alliances and reformed the way in which we trade with each other. I think the second major transformation is the impact of artificial intelligence on everything we do from data management to dating and everything in between.”

Lagarde has been head of the European Central Bank since 2019. Previously, she served in France’s government, including as minister for foreign trade, and as managing director of the International Monetary Fund.

She said she thought part of the current trade war between the United States and China was posturing.

“I would discount a little bit of the positioning at the moment because this is typical of negotiating tactics on both sides. Typical,” Lagarde told Brennan. “You show your muscles and you say that you’re ready to kill. I’m exaggerating, of course. But people will have to come to the table because it’s the interest of both economies, despite the hostility that there is between the two.”