The general director of the World Trade Organización (WTO) , Ngozi Okonjo-Iweala , expressed her concern about the tariffs implemented by Donald Trump , president of the United States, which, she warned, could cause a 1% contraction in the volumes of world merchandise trade in 2025 .
Okonjo-Iweala noted that this represents a downward revision of nearly four percentage points compared to previous projections.
“I am deeply concerned about this decline and the potential for it to escalate into a tariff war with a cycle of retaliatory measures leading to further declines in trade,” she stressed.
He warned that the recent announcements will have substantial implications for global trade and the prospects for economic growth.
In response, he noted that the WTO is analyzing the measure implemented by the U.S. president.
“The WTO Secretariat is closely monitoring and analyzing the measures announced by the United States on April 2, 2025,” he stressed.
Despite tariff measures, such as the imposition of a 25% tariff on vehicles imported by the United States, as well as reciprocal tariffs on several countries around the world, the vast majority of global trade continues to flow under the WTO’s Most Favored Nation (MFN) terms .
“Our estimates now indicate that this percentage currently stands at 74%, down from 80% at the beginning of the year. WTO members must stand united to safeguard these gains,” he urged, given the uncertainty generated by the United States’ tariff policy.
Ngozi Okonjo-Iweala said trade measures of that magnitude have the potential to create significant trade diversion effects.
In response, he urged WTO members to responsibly manage the resulting pressures to prevent trade tensions from escalating.
It’s worth remembering that on April 2 , Trump announced a series of reciprocal global tariffs that will apply to products entering the United States from various countries around the world. He also maintains a 25% tariff on vehicles imported into the United States.
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