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| President Trump |
The World Bank has confirmed that many countries have imposed high tariffs on U.S. exports, which fall under unfair trade practices. Trump has long argued that foreign nations don't treat the U.S. fairly in trade, and now the World Bank is echoing that sentiment, stating that these countries should bring their tariffs down to U.S. levels. This is a significant diplomatic moment because it's the first time a major neutral global institution has openly backed the U.S. position on trade imbalances.
This issue goes beyond economics—it impacts politics, trade policy, and the global power structure. Trump's “America First” narrative gains serious momentum with this backing, especially as he enters the 2025 election cycle. The timing of this report is strategic, and it could become a key talking point in his campaign.
If other countries don’t lower their tariffs, the World Bank warns that the global economy could slow further. It has already downgraded the 2025 global GDP growth forecast to 2.3% and the U.S. to just 1.4%—the lowest since 2008, excluding the pandemic. In a worst-case scenario, if trade tensions rise, global growth could fall to 1.8%.
This also sends an indirect message to China, the EU, and Latin American countries. If they don't respond, the U.S. will feel justified in continuing or expanding its own tariffs, like the “Liberation Day Tariffs” Trump announced in April 2025. From a market perspective, a reduction in global tariffs could strengthen the U.S. dollar, boost U.S. manufacturing and commodities, but put emerging markets under pressure.
This development isn’t just about trade—it represents a geopolitical and strategic shift. The World Bank siding with Trump signals that even global institutions are moving away from “free trade at any cost” toward “fair and reciprocal trade.” For Trump, this moment delivers a powerful mix of policy validation, narrative control, and political leverage.
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