'If you delay, it hurts everyone': World Bank's Ajay Banga to developing countries on trade deal with US

Ajay Banga

Developing countries should swiftly negotiate trade deals with the United States at the "earliest possible opportunity," according to the president of the World Bank, Ajay Banga, reported AFP on Friday. This statement follows a busy week with global financial leaders in Washington.

Banga spoke during the World Bank and International Monetary Fund's Spring Meetings, which this year took place amid uncertainty surrounding President Donald Trump's inconsistent tariff policies. The Bank has been advising developing countries to finalize trade agreements quickly with the United States and then focus on reducing trade barriers and enhancing regional trade.

"You need to negotiate trade agreements with the U.S. as soon as possible," he emphasized. "Delaying these negotiations is detrimental to everyone."

Trump's tariffs have created turbulence in financial markets, increased volatility, and unsettled investors and consumers. Since taking office in January, the U.S. leader has imposed a standard 10 percent tariff on most countries, with significantly higher duties on China.

Additionally, he has levied 25 percent tariffs on specific sectors, such as steel, aluminum, and automobiles that are not made in the United States. He also imposed steeper tariffs on several countries—though these have since been temporarily paused—accusing them of maintaining an unfair trade balance with the U.S.

(With AFP inputs)