Global Trade Faces Turbulence Amid Escalating Tariff Disputes

The World Trade Organisation forecasts a 0.2% decline in global trade volume due to US tariff policies and a trade standoff with China. The impact could worsen if tariffs are fully implemented. North America's trade will be hit hardest, with significant decreases in exports and imports expected.

The World Trade Organisation has issued a stark warning, predicting a 0.2% drop in global trade volume this year, largely attributed to President Donald Trump's shifting tariff policies and an ongoing trade standoff with China. The WTO cautioned that the impact could be more severe if Trump proceeds with his harshest tariff measures.

The organization highlighted that North America would experience the most drastic effects, with exports projected to fall by 12.6% and imports by 9.6% even without the heftiest tariffs. The report, based on current tariff situations, notes that the downturn in trade poses a significant threat to economic stability worldwide.

Despite a 90-day pause on the toughest tariffs, the uncertainty surrounding trade policies is hindering global economic growth, with particularly adverse effects on vulnerable economies. WTO officials emphasized the need for clearer perspectives on the potentially wide-ranging consequences of tariffs amid escalating trade tensions.

(With inputs from agencies.)