Impact of U.S. Tariff Policies on the Economy

PARIS (Reuters) – The tariff policies of United States President Donald Trump will likely have a negative impact on the economy, affirmed Bank of France head Francois Villeroy de Galhau on Wednesday.

“There will very likely be a negative effect,” Villeroy, who is also a member of the European Central Bank (ECB), told France Culture radio.

“Protectionism is a seductive short-term policy, but in the long term it is a losing strategy,” he added.

Villeroy also reaffirmed that France would likely avoid an economic recession in 2025. The Bank of France on Tuesday stated that the French economy is expected to grow 0.1-0.2% in the first quarter compared to the previous three months.