Davos 2025 | WEF CEO says Trump will use tariffs as a trade negotiation tactic

Donald Trump will likely use tariffs as a trade negotiation tactic, focusing on countries like China and Europe where the US has large trade deficits, said World Economic Forum (WEF) President and CEO Borge Brende in an interview with CNBC-TV18 at Davos.

While tariffs may serve as a bargaining tool, Brende believes it is essential for Trump to outline a clear economic policy to sustain growth and control inflation.

Trump recently discussed trade and other issues in a call with Chinese President Xi Jinping, signaling the start of renewed negotiations.

Watch | A walk down the Davos promenade with CNBC-TV18

In addition to trade, Brende noted that Trump’s administration will focus on tackling inflation and immigration. “We will see very soon some steps on the immigration side, but on the inflation, it is more of a mixed thing. So he will need to also then share what is his economic policy to keep the growth going, but also making sure that inflation is not coming back”.

Brende drew parallels with Trump’s earlier presidency, where tariffs were employed as leverage in trade talks. The impact of such measures on inflation remains to be seen, he said.

Also Read | India’s renewable energy progress remarkable: WEF

As Trump prepares to assume office on January 20, the world watches closely to see how these strategies unfold and impact the global economic landscape.

For the full interview, watch the accompanying video.