"Global Impact Is Too Great" World Bank Presidents Warn Trump in Unison

On the 4th (local time), U.S. President Donald Trump imposed a uniform 25% tariff on Mexico and Canada, prompting central bank governors worldwide to unanimously warn that Trump's tariff policy could trigger trade frictions and inflation globally. It is also anticipated that by the end of this year, the impact of tariffs will become visible, affecting consumer goods such as food, clothing, electronics, and furniture.

According to the British BBC and The Guardian on the 5th, Andrew Bailey, Governor of the Bank of England (BOE), stated during a Q&A session with members of the UK Parliament that Trump's tariff policy poses "considerable risks not only to the UK but also to the global economy."

Alan Taylor, a member of the BOE's Monetary Policy Committee (MPC) who was present, also expressed concern, saying, "If you throw sand into the gears of trade, we will inevitably suffer losses in some way." Governor Bailey fully agreed with Taylor's remarks, emphasizing, "Trade supports growth, and openness promotes innovation and the spread of ideas."

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), also remotely attended an IMF event held in Tokyo, Japan, the previous day, stating, "We know that trade is no longer the driving force of global economic growth as it was in the past," and added, "The new U.S. administration is rapidly changing policies on trade, taxation, public spending, deregulation, and digital assets, prompting other governments to readjust their policies accordingly."

John Williams, President of the Federal Reserve Bank of New York, also said at a Bloomberg event held in New York the previous day, "We see the possibility that tariffs could affect inflation and prices," and predicted, "Some effects are expected to appear around the end of this year." In particular, it is expected that the impact on consumption will be reflected quickly.

In Europe, concerns are greater as Trump is likely to focus his attacks there. Christine Lagarde, President of the European Central Bank (ECB), expressed in an interview with CNBC that Trump's decision not to choose comprehensive tariffs was "wise." She noted, "Comprehensive tariffs may not necessarily bring the expected results," and pointed out, "The Trump administration's tariff policy is more selective and likely to focus on specific targets." In preparation for U.S. tariff policies, she advocated for the removal of trade barriers within Europe, stating, "Europe aims to build a single market, but obstacles still exist that hinder the smooth movement of goods and services."