BoE Governor Warns Against Trump’s Tariff Threats, Urges Global Collaboration

Bank of England Governor Andrew Bailey delivered a sharp critique of former US President Donald Trump's trade policies during the annual Mansion House dinner in London. Bailey labeled Trump's proposed 30% tariffs on EU and Mexican imports—stacked atop existing Chinese goods levies—as "economic sabotage" that WOULD backfire by fueling inflation and disrupting global commerce.

The central banker warned these measures risk triggering a destructive cycle of retaliation and protectionism. "Higher tariffs slow trade flows and inflate consumer prices," Bailey noted, arguing such policies ultimately harm the households they purport to protect. His remarks come as global supply chains face renewed strain from geopolitical tensions.

Bailey emphasized the urgent need for US-China cooperation to address trade imbalances, noting the two nations account for 40% of global current account disparities. The BoE governor dismissed tariff wars as solutions, instead advocating for coordinated policy adjustments to rebalance savings and consumption patterns between surplus and deficit economies.