The World Bank is encouraging developing countries to strike trade deals with the United States as quickly as possible to mitigate the risks posed by the uncertainty of President Donald Trump’s tariff policies, said the lender’s President Ajay Banga.

Speaking at the close of the World Bank and International Monetary Fund Spring Meetings in Washington, Banga said, “You need to negotiate trade systems with the US at the earliest possible opportunity. If you delay, it hurts everyone.” The Spring Meetings took place amid global concern over the US administration’s erratic tariff measures, which have unsettled markets and raised fears of slower growth.

Since returning to the office, Trump has implemented a baseline 10 percent tariff on most imports and higher rates on key sectors, including steel, aluminum, and automobiles. Sector-specific levies and accusations of unfair trade practices have deepened global tensions, although some tariffs were temporarily paused.

Banga also responded to US Treasury Secretary Scott Bessent’s criticism of China’s status as a developing country within the World Bank framework. “I don’t think he’s wrong,” Banga said, noting China’s significant repayments and donations to the International Bank for Reconstruction and Development while still borrowing about $750 million last year.

On the World Bank’s broader role, Banga defended calls for greater accountability to US taxpayers and highlighted efforts to streamline operations, promote private investment, and expand electricity access, particularly in Africa. He emphasised that energy expansion should pursue the “lowest possible cost,” including considering nuclear and gas alongside renewables.