Saturday, April 5, 2025 - The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has expressed concern over new tariffs introduced by the United States, warning that these, combined with earlier tariffs imposed at the start of the year, could lead to a contraction of about 1% in global merchandise trade volumes in 2025.
"I'm deeply concerned about this decline and the
potential for escalation into a tariff war with a cycle of retaliatory measures
that lead to further declines in trade," Okonjo-Iweala said in a
statement.
She also highlighted that these tariffs could cause
significant trade diversion effects, noting that the WTO now administers 74% of
global trade, a decrease from around 80% at the start of the year due to the
introduction of new tariffs.
World leaders have warned of the potential negative economic
consequences of the tariffs. European Commission President Ursula Von Der Leyen
called the announcement of universal tariffs, including those on the European
Union, “a major blow to the world economy.”
Earlier in the day, Okonjo-Iweala addressed WTO member
states in a letter seen by Reuters, acknowledging the numerous inquiries
received about the tariffs. "Many of you have been in touch about the U.S.
announcement on tariffs, asking for the Secretariat to provide an economic
analysis of the impact of these tariffs and any potential reaction on your
trade," she wrote.
Observers suggest that the U.S.'s determination to persist
with the tariffs could undermine the Geneva-based WTO and its role in promoting
free trade.
0 Comments