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.

(With inputs from agencies.)