World Trade Organization (WTO) Director-General Ngozi Okonjo-iweala expressed concern about the U.S.’s new tariffs, warning that these tariffs, with the beginning of the year, could result in about 1% revenue in global commodity trade in 2025 and impose about 1% tariffs in 2025.
“I am deeply concerned about this decline and the potential for escalation into a tariff war and have taken retaliatory measures that have led to a further decline in trade,” Okonjo-Iweala said in a statement.
She also stressed that these tariffs could cause a significant trade transfer effect, noting that the WTO now manages 74% of global trade, which has been reduced by about 80% from 80% at the beginning of the year due to the introduction of new tariffs.
World leaders warn of the potential negative economic consequences of tariffs. European Commission President Ursula von der Leyen said the announcement of universal tariffs, including tax rates on the EU, was “a major blow to the world economy.”
Earlier in the day, Okonjo-Iweala addressed WTO members in a letter seen by Reuters and admitted to receiving numerous inquiries about tariffs. “Many of you have been contacting the U.S. announcement on tariffs, asking the Secretariat to conduct an economic analysis of the impact of these tariffs and any potential responses to your trade,” she wrote.
Observers believe that the U.S. determination to adhere to tariffs could undermine the Geneva-based WTO and its role in promoting free trade.
