The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala has issued a stark warning about the potential impact of newly imposed US tariffs on global commerce.
According to the WTO Director-General, these trade measures could lead to a 1% contraction in global merchandise trade volumes.
Pan-Atlantic Kompass reports that the US, under President Donald Trump’s administration, rolled out a sweeping trade policy, introducing a baseline 10% tariff on all imports starting April 2, 2025.
Alongside this, higher reciprocal tariffs were announced for countries, with Trump announcing 14% tariffs against exports from Nigeria into the US.
This move has sparked widespread debates among economists, policymakers, and global leaders.
Joining the debate, Okonjo-Iweala, in a press statement said that the WTO Secretariat is “closely monitoring and analyzing” the U.S. measures.
“These actions could trigger retaliatory tariffs from other nations, potentially fueling a cycle of trade disputes that weakens global trade flows and economic growth,” she cautioned.
She added: “The recent announcements will have substantial implications for global trade and economic growth prospects. While the situation is rapidly evolving, our initial estimates suggest that these measures, coupled with those introduced since the beginning of the year, could lead to an overall contraction of around 1% in global merchandise trade volumes this year, representing a downward revision of nearly four percentage points from previous projections.”
Okonjo-Iweala emphasized the need for constructive dialogue to mitigate the fallout. “The WTO remains a vital platform for resolving disputes and safeguarding global trade stability,” she said.
The WTO chief urged member nations to leverage the organization’s mechanisms to prevent further escalation and seek cooperative solutions.
