WTO Chief Warns of Catastrophic Trade War Consequences

The WTO Director-General highlighted the disastrous impact of potential trade wars, particularly with rising tariffs, during a discussion at the World Economic Forum in Davos. Ngozi Okonjo-Iweala warned that such retaliatory measures could lead to a significant double-digit decline in global GDP, referencing historical economic downturns.

The World Trade Organization (WTO) chief has issued a stark warning about the damaging effects of trade wars on global economic growth. During a discussion at the World Economic Forum in Davos, Director-General Ngozi Okonjo-Iweala cautioned against escalating tariff conflicts.

Addressing the topic in the context of U.S. President Donald Trump's tariff threats, Okonjo-Iweala emphasized the potential for catastrophic consequences. 'If we have tit-for-tat retaliation, whether it's a 25% tariff or 60%, and we revert to conditions akin to the 1930s, we will witness double-digit losses in global GDP. That would be catastrophic, with everyone bearing the cost,' she warned.

This critical discussion underscores the importance of diplomacy and cooperation to prevent a repeat of past economic disasters. The WTO's call for restraint is a reminder of the fragile state of global commerce in today's interconnected economy.