World Leaders React as Trump Unveils Tariffs Plan at Davos 2025
At the World Economic Forum’s Annual Meeting 2025 in Davos, U.S. President Donald Trump announced an ambitious plan to impose tariffs on companies manufacturing products outside the United States. Speaking virtually to global leaders and industry giants, Trump stated that these tariffs could generate up to trillions of dollars in revenue for the U.S.
Trump emphasized that companies producing goods within the U.S. would benefit from a reduced corporate tax rate of 15 percent, compared to the existing 21 percent. He criticized the European Union for imposing high tariffs and restrictive regulations that make it challenging for American products to enter European markets.
Global leaders and economic experts voiced concerns over the potential impact of Trump’s tariff plan on the world economy. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), warned that a tariff war would not benefit anyone. “If we engage in tit-for-tat retaliation, we risk returning to the economic conditions of the 1930s, leading to double-digit global GDP losses, which would be catastrophic,” she cautioned.
Valdis Dombrovskis, European Commissioner for Economy and Productivity, echoed these sentiments, stating that raising tariffs is not the right tool to address economic or national security concerns. He suggested that President Trump should focus on tackling economic inequality instead.
European Central Bank President Christine Lagarde told reporters that Europe must “be prepared” and anticipate the potential trade tariffs proposed by President Trump. “We need to assess the implications and ensure that we safeguard the European economy,” Lagarde said.
The ongoing discussions at Davos highlight the complexities of global trade in an interconnected world. As leaders grapple with these challenges, the future of international economic relations remains uncertain.
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Leaders grapple with their own message as Trump 2.0 debuts at Davos
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