Bloomberg reported on the 15th that Andrew Bailey, Governor of the Bank of England, stated directly that U.S. President Trump’s launching of a global trade war is the wrong approach to addressing global economic imbalances, and warned that this move will harm the interests of families worldwide.
Reports indicate that Bailey made the above statement in his annual Mansion House speech. He urged countries, particularly China and the United States, to strengthen cooperation to address the “unsustainable” trade and financial imbalances that are distorting economies and exacerbating political tensions.
Andrew Bailey; Image Source: Foreign Media
“How to reconcile an open world economy with national interests is an age-old question,” Bailey stated. “The rules in this process must be accepted; rules imposed by one party, no matter how dominant, are not a way to maintain stability.” Bloomberg reported that these remarks appeared primarily directed at the US government.
Bailey also warned that Trump’s attempt to use tariffs to bring manufacturing jobs back to the United States could backfire, stating that “raising tariffs risks fracturing the global economy and thus dampening economic activity.”
Bloomberg reported that, just days before Bailey made the above remarks, Trump had threatened to impose a 30% tariff on goods imported into the US from Mexico and the European Union. In response, various European parties expressed strong dissatisfaction, arguing that Europe should not be intimidated by America’s threats but should instead accelerate efforts to reduce its dependence on the US.