World Bank President Ajay Banga urged developing nations to strike trade agreements with the United States "at the earliest possible" opportunity, warning that delays could harm global economic stability amid President Donald Trump's new tariff policies, according to Breitbart.
"You need to negotiate trade systems with the US at the earliest possible (opportunity)," Banga told AFP during the World Bank and International Monetary Fund Spring Meetings in Washington. "If you delay, it hurts everyone."
Banga's comments come as Trump's administration implements a "baseline"10 percent tariff on most countries, with higher rates on China and sector-specific duties of 25 percent on steel, aluminum, and automobiles not manufactured in the United States. Trump, who returned to office in January, has also imposed higher tariffs on dozens of countries, although some increases have been temporarily suspended.
Banga also weighed in on criticism from U.S. Treasury Secretary Scott Bessent, who called China's developing country status "absurd" earlier this week and challenged the World Bank and IMF leaders to "earn the confidence of the administration."
"I don't think he's wrong," Banga said, supporting Bessent's assessment. "A country that is the size of China and the capability of China, at some point, should no longer be taking money from IBRD," he said, referring to the International Bank for Reconstruction and Development.
Banga noted that China borrowed approximately $750 million from the IBRD last year while continuing to repay and donate billions of dollars to the World Bank. "My view is, I've brought it down to 750 (million), and I'm trying to figure out a way to deal with China to bring it down further," he said. "I want to get it done. And that's what I'm talking to the Chinese about."
Addressing broader criticisms from the Trump administration, Banga said concerns about "expansive policy overreach" are typical following political transitions in major countries, including France, Japan, and Korea.
"I keep telling people this is a perfectly constructive request, to say, tell me, and show me that you guys are the kind of people that advance the interests of my taxpayer, of my country," he said. "I take it in that spirit," he said. "There's nothing wrong with it."
Since assuming leadership of the World Bank in 2023, Banga has prioritized streamlining operations, boosting private sector engagement, and expanding job creation and access to electricity in developing regions. One major initiative, a collaboration with the African Development Bank, aims to connect 300 million people in sub-Saharan Africa to electricity by 2030.
"You should try and get (energy) in the best, accessible way and the lowest possible cost," Banga said, suggesting nuclear and gas could supplement renewable sources. The Bank's executive board will review its energy financing strategy in June, potentially revisiting nuclear and gas funding policies.
Banga also emphasized the need for developing economies to foster private sector job growth rather than relying solely on outsourced employment from wealthier nations. "Because then you end up with challenges in (advanced economies), and you can see that people are speaking about them with their votes," he said.