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World Bank president cautions against hasty reaction to Trump policies
Tuesday, 28 January 2025 04:14 WIB | MARKET UPDATE |

Policymakers around the globe should not react in haste to announcements by U.S. President Donald Trump's administration, and be prepared to argue their case, World Bank President Ajay Banga told Reuters.

Trump's first week in office has seen a flurry of executive orders and policy plans, ranging from tariffs on Canada, Mexico and China to a review on all existing foreign assistance.

"My only advice to everyone is don't be in too much of a hurry to respond or judge," Banga told Reuters in an interview on the sidelines of the Mission 300 Africa Energy Summit in Tanzania's commercial capital of Dar Es Salaam.

Policymakers should wait to see what policies are actually executed, Banga added.

"I have dealt with him (Trump) in the past. He is a very practical man, he understands numbers, he understands leverage and he understands advantage. You have to go to him and explain to him what you bring."

The U.S. and Colombia pulled back from the brink of a trade war on Sunday after the White House said its third-largest U.S. trading partner in Latin America had agreed to accept military aircraft carrying deported migrants.

Washington's draft measures - now on hold - had included imposing steep and rising tariffs on all Colombian imports, a travel ban and visa revocations on Colombia government officials.

The World Bank could feel the effects of any travel restrictions.

"If their visas don't work, that's a problem," said Banga.

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Asked about Friday's "stop-work" order issued by the U.S. State Department on all existing and future foreign assistance, Banga said the Washington-based lender was "not yet" affected as it operated differently to bilateral aid.

Asked about return to office plans for World Bank staff, Banga said he had no plans to change the mandate beyond the current four days a week.

"I expect World Bank employees to be back four days a week," he said, adding there were no plans today to increase this to five.

Trump has ordered federal workers to return to the office five days a week.(Cay) Newsmaker23

Source: Investing.com

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