Economy July 24, 2026 02:13 AM

Bank of France Governor Warns U.S. Tariffs Raise Global Trade Uncertainty

New duties on goods from 60 trading partners, including the EU and China, seen as a headwind to growth despite a bilateral trade understanding

By Leila Farooq
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Emmanuel Moulin, governor of the Bank of France, said tariffs recently imposed by the U.S. administration increase uncertainty for global commerce and are not supportive of economic growth. The duties - introduced as a temporary global levy expired - target goods from 60 trading partners amid allegations of insufficient enforcement of forced labour bans. Moulin noted that a 2025 trade deal with the European Union should limit the impact on Europe but nonetheless described the measures as a headwind for growth.

Bank of France Governor Warns U.S. Tariffs Raise Global Trade Uncertainty
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Key Points

  • The U.S. imposed 10% and 12.5% tariffs on goods from 60 trading partners, including the European Union and China.
  • Bank of France governor Emmanuel Moulin said the tariffs increase uncertainty for world trade and act as a headwind for economic growth.
  • Moulin noted that Europe may be relatively insulated due to a 2025 trade deal struck with the EU at Turnberry, which he said should be respected.

PARIS, July 24 - New U.S. tariffs on imports from a broad group of trading partners add to uncertainty across international commerce, Bank of France governor Emmanuel Moulin said on Friday.

The measures announced by the United States impose levies of 10% and 12.5% on goods from 60 trading partners, among them the European Union and China. The move follows the expiration of a temporary 10% global tariff and was framed by U.S. authorities as a response to alleged lax enforcement of bans on forced labour.

Moulin described the U.S. duties as a headwind for the global economy. He said that, for Europe, the effects should be limited because of a 2025 trade agreement negotiated with the EU at Turnberry. "For Europe, it ought not to change much because we have the Turnberry agreement which should be respected by Donald Trump. But obviously it creates more uncertainty for world trade and clearly it’s not favourable for growth," he told BFM Business TV station.

Those comments underline the Bank of France governor's view that the tariff action, even if bounded by a bilateral understanding with the EU, still contributes to a less predictable environment for cross-border commerce and economic expansion. Moulin emphasised the uncertainty the measures introduce rather than forecasting direct outcomes beyond their negative effect on growth.

The tariffs affect a wide set of trading relationships by applying across goods sourced from six dozen partners and come at a moment when a prior, temporary 10% global levy has come to an end. Moulin's statements focused on the implications for world trade and the wider economic growth trajectory rather than on specific industries or firms.

While he signalled that the Turnberry accord should help shield Europe from a major shift in trade patterns, Moulin nonetheless framed the new duties as unwelcome for global commerce and economic momentum.

Risks

  • Greater uncertainty for global trade flows, which could affect exporters and importers in affected regions - particularly trade-dependent sectors.
  • Negative implications for economic growth as the tariffs act as a headwind, potentially slowing expansion across affected economies.
  • Potential strain on trade relations between the United States and major partners such as the EU and China, introducing further unpredictability into international commerce.

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