WTO Warns of Global Trade Contraction Amid US Tariffs

The WTO cautions that the US-imposed tariffs could lead to a 1% contraction in global merchandise trade volumes this year. Director-General Ngozi Okonjo-Iweala expressed concerns about potential escalation into a tariff war and emphasized the need for global cooperation to manage trade tensions.

The World Trade Organization (WTO) has issued a warning following the United States' recent announcement of tariffs on nearly 60 countries, a move that could shrink world trade volumes by 1% this year. Such measures are predicted to hinder overall economic growth, the organization said in a statement Thursday.

In her statement, WTO Director-General Ngozi Okonjo-Iweala expressed serious concern over the potential for a trade war and elaborated on the organization's revised estimate, which marks a four percentage point decrease from previous projections.

Okonjo-Iweala called on WTO members to act responsibly to avoid escalating tensions, highlighting the need for unity to protect the integrity of global trade and prevent significant trade diversion effects.