WTO’s Dr. Ngozi Okonjo-Iweala Monitors US Tariffs and Potential Impact on Global Trade

The World Trade Organization (WTO) is closely monitoring the tariffs announced by US President Donald Trump on April 2, 2025, according to Dr. Ngozi Okonjo-Iweala, the Director-General of the organization. In a statement released on Friday, Dr. Okonjo-Iweala confirmed that the WTO is actively analyzing the trade levies and their potential effects on the global economy. “Many members have reached out to us, and we are actively engaging with them in response to their questions about the potential impact on their economies and the global trading system,” she said.

The tariffs, which were announced in a speech prior to Trump signing the executive order, have raised alarms in the international trade community. President Trump referred to the nations targeted by the tariffs as “foreign cheaters” and emphasized the need for the US to adopt a more aggressive stance in global trade negotiations. The tariffs include a 20 percent levy on goods from the European Union, 34 percent on China, 26 percent on India, and a steep 49 percent tariff on Cambodia.

Dr. Okonjo-Iweala expressed her concern regarding the broader economic implications of the newly imposed tariffs, stating that “the recent announcements will have substantial implications for global trade and economic growth prospects.” She further highlighted that while the situation remains fluid, the WTO’s initial estimates suggest that the measures could lead to significant reductions in global trade volumes.

“We estimate that these measures, combined with others introduced earlier this year, could result in an overall contraction of approximately 1 percent in global merchandise trade volumes this year,” she said. This forecast marks a downward revision of nearly four percentage points from previous projections, underscoring the potential damage to global trade.

The WTO Director-General stressed the importance of understanding the ripple effects of these tariffs across different economies. “While the situation is rapidly evolving, we are deeply concerned about the broader economic consequences, including the possibility of a wider global trade slowdown,” Dr. Okonjo-Iweala remarked.

In addition to the immediate economic effects, Dr. Okonjo-Iweala warned that the imposition of tariffs could escalate into a full-fledged trade war. “I am deeply concerned about this decline and the potential for escalation into a tariff war, with a cycle of retaliatory measures leading to further reductions in trade,” she cautioned. Such a scenario, she noted, could further destabilize global trade and undermine the prospects for economic recovery.