Bank of England boss warns over ‘fragmenting’ world economy amid Trump tariffs
Governor Andrew Bailey said he does not want to ‘jump to conclusions’ on the effect of proposed tariffs until they are confirmed.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The Governor of the Bank of England has warned over “fragmenting” the world economy amid promises from Donald Trump that he will impose steep trade tariffs on other countries.
Speaking to MPs on Tuesday, Andrew Bailey said the UK should keep an “active dialogue” with the incoming US administration, following Mr Trump’s election win.
When asked about potential tariffs, Mr Bailey said: “I would be very clear, fragmenting the world economy is not a good thing.”
However, the governor added that he does not want to “jump to conclusions” on the effect of particular tariffs on UK policy.
“I don’t think we can make that judgment today because we literally do not know what their intentions are.”
Mr Trump has repeatedly said he will levy a 20% tax on all imports, which economists have warned would hit UK economic growth.
Speaking to the Treasury Select Committee of MPs, Mr Bailey declined to pass judgment on what the effect of those policies could be until they were set in stone.
He said US policymaking does not have the “same tightness” to pre-election commitments as the UK, and that it is “important that we wait to see what the administration actually does”.
Mr Bailey said policymakers should therefore “be in an active dialogue with the Trump administration on those policies as they effect the UK”.