Ngozi Okonjo-Iweala, the Director General of the World Trade Organization (WTO), has stated that President Donald Trump’s tariff policies are being closely monitored and analyzed.
Trump, at an event he tagged ‘Liberation Da’, on Wednesday, slammed a 10% tariff on all goods coming into the United States from all countries of the world.
According to the United States President, for too long other countries took advantage of America’s generosity and open markets, declaring “That ends now”.
Many countries, including China, Canada, the United Kingdom and the European Union (EU) have threatened to reciprocate Trump’s new tariff.
In a statement on Friday, Mrs. Okonjo-Iweala appealed to member states of the WTO to manage pressures to avoid destabilizing gains made in international trade.
The WTO DG stated that Trump’s new tariff would definitely impact global trade and economic growth prospects.
It read: “The WTO Secretariat is closely monitoring and analyzing the measures announced by the United States on April 2, 2025. Many members have reached out to us and we are actively engaging with them in response to their questions about the potential impact on their economies and the global trading system.
“The recent announcements will have substantial implications for global trade and economic growth prospects. While the situation is rapidly evolving, our initial estimates suggest that these measures, coupled with those introduced since the beginning of the year, could lead to an overall contraction of around 1% in global merchandise trade volumes this year, representing a downward revision of nearly four percentage points from previous projections. I’m deeply concerned about this decline and the potential for escalation into a tariff war with a cycle of retaliatory measures that lead to further declines in trade.
“It is important to remember that, despite these new measures, the vast majority of global trade still flows under the WTO’s Most-Favored-Nation (MFN) terms. Our estimates now indicate that this share currently stands at 74%, down from around 80% at the beginning of the year. WTO members must stand together to safeguard these gains.
“Trade measures of this magnitude have the potential to create significant trade diversion effects. I call on Members to manage the resulting pressures responsibly to prevent trade tensions from proliferating.
“The WTO was established to serve precisely in moments like this — as a platform for dialogue, to prevent trade conflicts from escalating, and to support an open and predictable trading environment. I encourage Members to utilize this forum to engage constructively and seek cooperative solutions.”
