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    Home > Finance > ECB's Villeroy reaffirms that Trump policies will likely be negative for economy
    Finance

    ECB's Villeroy reaffirms that Trump policies will likely be negative for economy

    Published by Global Banking & Finance Review®

    Posted on February 12, 2025

    1 min read

    Last updated: January 26, 2026

    Francois Villeroy de Galhau, head of the Bank of France, addresses the negative implications of Trump’s tariff policies on the economy, highlighting concerns about protectionism and its long-term effects.
    Francois Villeroy discusses Trump policies' negative economic impact - Global Banking & Finance Review
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    Quick Summary

    ECB's Villeroy warns Trump's tariffs could harm the economy, calling protectionism a losing strategy. France likely to avoid recession in 2025.

    ECB's Villeroy Warns of Negative Impact from Trump Tariffs

    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)

    Key Takeaways

    • •Trump's tariff policies are likely to negatively impact the economy.
    • •Villeroy criticizes protectionism as a long-term losing strategy.
    • •France is expected to avoid a recession in 2025.
    • •French economy projected to grow slightly in the first quarter.
    • •Villeroy's comments were made on France Culture radio.

    Frequently Asked Questions about ECB's Villeroy reaffirms that Trump policies will likely be negative for economy

    1What is the main topic?

    The main topic is the potential negative impact of Trump's tariff policies on the economy, as discussed by ECB's Villeroy.

    2What did Villeroy say about protectionism?

    Villeroy described protectionism as a seductive short-term policy but a losing strategy in the long term.

    3What is the economic outlook for France?

    France is expected to avoid a recession in 2025, with slight growth projected for the first quarter.

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