Top ECB Official Blasts Trump’s Trade War as ‘Lose-Lose Game’ in Stark Warning to U.S.
Francois Villeroy de Galhau, a senior official at the European Central Bank (ECB), issued a forceful rebuke of former U.S. President Donald Trump’s trade policies, calling them a “lose-lose game” that damaged global economic stability and eroded trust between longstanding allies.
Speaking at a conference in New York, Villeroy warned that the return of aggressive trade measures—like elevated tariffs between major economies—poses a serious risk to financial market stability, global investment, and fragile growth forecasts.
“Raising barriers is not strength. It is uncertainty,” Villeroy said, calling for “constructive dialogue” over confrontation.
IMF Cuts Growth Forecasts Amid Trade Concerns
Villeroy’s remarks followed a downward revision of global growth forecasts by the International Monetary Fund (IMF), which cautioned that escalating trade tensions could further derail an already slowing global economy.
The ECB official used the moment to call for a transatlantic reassessment of the damage wrought by the trade war and encouraged a reopening of economic cooperation between the U.S. and EU.
Pushback Against Trump’s Anti-EU Rhetoric
Villeroy also addressed Trump’s recurring criticism of the European Union, including his claims that the EU exists to exploit the U.S. economically. He dismissed that narrative, saying the EU was formed after World War II with strong American support and built on shared values of peace, democracy, and open markets.
“The EU is multilateralism at its best,” Villeroy said. “It reflects American ideals more than many realize.”
His comments reflect rising unease in Europe over Washington’s shift toward a more transactional, confrontational foreign policy, diverging from the collaborative tone of previous U.S. administrations.
Not Just Tariffs: A Plea for Facts and Cooperation
Villeroy noted that the U.S. runs a substantial services trade surplus with the EU, particularly in areas like finance, tech, and consulting—undermining claims that trade relations are unbalanced. He also explained that VAT systems, often misunderstood in U.S. debates, are not protectionist tools and should not be conflated with tariffs.
In a broader call to action, Villeroy encouraged Europe to invest more strategically, innovate faster, and forge stronger global partnerships to better respond to external shocks like trade wars.
A Warning on Central Bank Independence
He closed his speech with a pointed reminder about the importance of central bank autonomy, cautioning that recent political interference—both in the U.S. and elsewhere—risks damaging the credibility of monetary policy and undermining long-term financial stability.
“Attacks on central bank independence are not just political theater. They have real, damaging consequences,” he warned.
Villeroy emphasized that there is still time to rebuild common ground between the U.S. and Europe, particularly on key fronts such as financial stability, cybersecurity, digital assets, and climate cooperation.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
