Trade Tensions Threaten Global Merchandise Growth

The Director-General of the World Trade Organization, Ngozi Okonjo-Iweala, warns that U.S. tariffs could decrease global merchandise trade volumes by about 1% in 2025. The WTO is analyzing U.S. trade measures to assess potential global economic impacts.

The Director-General of the World Trade Organization has issued a critical warning concerning recent trade developments. According to Ngozi Okonjo-Iweala, the tariffs declared by the United States on April 2, alongside measures planned for early 2025, could cause a global merchandise trade contraction of around 1% in 2025.

The WTO head highlighted the potential risks these tariffs could pose on international markets and economic stability. Okonjo-Iweala emphasized the organization's commitment to meticulously monitoring and analyzing these U.S. policies to understand their full global impact.

This attention to U.S. tariffs underscores the broader geopolitical tensions influencing international trade dynamics, with significant consequences for economies worldwide as they brace for potential market fluctuations and contractions.

(With inputs from agencies.)