World Bank Supports Trump’s Claims on Unfair Trade Practices
On Tuesday, the World Bank acknowledged President Trump’s concerns over unfair trade practices by foreign countries towards the United States, suggesting that it would be beneficial for the U.S. to reduce tariffs on its exports.
Top economists from various international organizations expressed support for funding initiatives in low- and middle-income countries, recognizing that many nations do not extend mutual trade access to the U.S.
“This situation,” said Indermit Gill, the Chief Economist at the World Bank, in a recent news briefing, reflecting on the ongoing challenges.
Gill emphasized that the World Bank will need to adjust its global growth forecast significantly, citing the “tariff snowstorm” as a factor impacting the overall economic landscape. He mentioned that Trump’s actions are, perhaps, a response to the imbalanced trade access that many countries maintain with the U.S.
Other experts at the World Bank echoed this sentiment, recommending that Europe, Japan, and China should take measures to lower trade barriers with the U.S., advocating for a complete rollback of tariffs.
The latest economic outlook from the World Bank revised down expectations for U.S. growth in 2025 to 1.4%, a notable decrease from the previous forecast of 2.3% made in January.
If this prediction holds true, the projected annual growth rate would be the lowest for the U.S. since the aftermath of the Great Recession, not accounting for the impacts of the Covid-19 pandemic.
Conversely, China’s growth forecast remained unchanged at 4.5%. However, the overall global growth expectation has been reduced from 2.7% to 2.3%. There’s a warning about the potential for even further declines—should trade conflicts persist, global growth could fall to as low as 1.8%.
“After facing a series of negative shocks in recent years, the global economy is now encountering yet another significant challenge, increased trade tensions, and ongoing policy uncertainty,” stated the International Financial Institution in its updated predictions.
Due to worsening global conditions, the growth forecast for 2025 has been downgraded, reflecting serious concerns.
Trump has implemented a base tariff rate of 10% on nearly all countries, alongside a 30% duty on imports from China and Hong Kong, while maintaining a 25% rate on foreign steel and aluminum, excluding trade governed by the US-Mexico-Canada Agreement.
The Congressional Budget Office estimates that if all tariffs in place since May 13 are sustained, they could generate approximately $2.8 trillion in revenue over the next decade.
Additionally, Trump has set a July 8 deadline for re-negotiating trade agreements, warning of a potential “liberation day” tariff surge for nations that do not comply.
