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World Bank Urges Trump to Lower Tariffs for Growth

6/11/2025

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Trump Advocates Tariff Cuts

The World Bank backs President Trump's push to lower tariffs, warning they hinder both U.S. and global growth. With the U.S. economy expected to grow just 1.4% by 2025, compared to China's steady 4.5%, the urgency for constructive U.S.-China trade talks is clear as both nations seek to navigate these economic hurdles together.

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Japan's Economy Declines

Japan's economy faced a setback, shrinking by 0.2% in Q1—the first decline in a year—amid rising concerns over US tariffs. Exports to the US dipped by 1.8%, prompting the Bank of Japan to lower its growth forecast to just 0.5% for 2025. Ongoing trade talks seek to resolve these pressing tariff challenges.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 raised U.S. tariffs on over 20,000 imports, triggering retaliatory tariffs and a 61% drop in U.S. exports by 1933. This protectionist policy contributed to the Great Depression and strained international trade relations. Today, similar tariff initiatives under President Trump echo this historical precedent, as both the U.S. and China face economic slowdowns linked to trade barriers.

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Trump Advocates Tariff Cuts

The World Bank backs President Trump's push to lower tariffs, warning they hinder both U.S. and global growth. With the U.S. economy expected to grow just 1.4% by 2025, compared to China's steady 4.5%, the urgency for constructive U.S.-China trade talks is clear as both nations seek to navigate these economic hurdles together.

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