The World Trade Organisation (WTO) has expressed concern over the new tariffs imposed by the US on its trading partners, warning that the measures could trigger a global trade downturn.
In a statement, WTO Director-General Dr. Ngozi Okonjo-Iweala said the secretariat is closely monitoring the situation and engaging with affected member countries. She noted that initial assessments indicate a potential 1% contraction in global merchandise trade volumes this year, a downward revision of nearly four percentage points from earlier projections.
Okonjo-Iweala cautioned that the US tariffs could escalate into a full-blown trade war if retaliatory measures continue. However, she assured that despite the policy shifts, 74% of global trade still operates under the WTO’s Most-Favored-Nation (MFN) terms.
She urged WTO members to manage trade tensions responsibly and use the organization as a platform for dialogue to prevent further economic disruptions.