Published by Global Banking & Finance Review®
Posted on February 12, 2025
1 min readLast updated: January 26, 2026
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ECB's Villeroy warns Trump's tariffs could harm the economy, calling protectionism a losing strategy. France likely to avoid recession in 2025.
PARIS (Reuters) - The tariff policies of United States President Donald Trump will most likely have a negative impact on the economy, reaffirmed 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 said the French economy was on course to grow 0.1-0.2% in the first quarter from the previous three months.
(Reporting by Sudip Kar-Gupta; Editing by Makini Brice)
The main topic is the potential negative impact of Trump's tariff policies on the economy, as discussed by ECB's Villeroy.
Villeroy described protectionism as a seductive short-term policy but a losing strategy in the long term.
France is expected to avoid a recession in 2025, with slight growth projected for the first quarter.
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