The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has warned that newly announced trade measures by the United States could lead to a 1% contraction in global merchandise trade volumes this year.
In a statement issued on April 3, she expressed concerns over the broader economic impact of these measures and the risk of escalating trade tensions.
Okonjo-Iweala noted that the latest US trade actions, announced on April 2, add to a series of measures introduced since the beginning of the year, leading to a downward revision of global trade projections by nearly four percentage points.
She cautioned that such actions could trigger retaliatory tariffs from other nations, potentially fueling a trade war that would further weaken global trade flows and economic growth.
“The WTO Secretariat is closely monitoring and analysing the measures announced by the United States on April 2, 2025,” the statement read.
It added, “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.”
The WTO chief highlighted a concerning decline in the share of global trade conducted under the organization’s Most-Favored-Nation (MFN) terms, which has dropped from around 80% at the beginning of the year to approximately 74% following recent trade measures.
She emphasized the importance of maintaining open and predictable trade policies, urging WTO members to work collaboratively to prevent further disruptions.
Okonjo-Iweala reaffirmed the WTO’s role as a platform for dialogue and conflict resolution in global trade. She urged member nations to engage constructively through WTO mechanisms to prevent trade disputes from escalating and to find cooperative solutions that safeguard global trade stability.
What you should know
In a sweeping trade policy shift, President Donald Trump announced a baseline 10% tariff on all imports starting April 2, alongside higher reciprocal tariffs for countries imposing steeper duties on American goods.
The measures affect over 50 nations, including major economies such as China, the European Union, India, and Japan, as well as developing countries across Africa, Asia, and Latin America.
- Nigeria, currently imposing a 27% tariff on U.S. exports, will now face a 14% U.S. tariff, signaling the broad reach of this new policy beyond traditional economic rivals.
- Other African nations impacted include Mauritius, which faces a 40% U.S. tariff in response to its 80% duty on American goods, and Algeria, where the U.S. will now impose a 30% tariff compared to the country’s existing 59% rate on U.S. exports.
- Across Asia, countries such as Vietnam, Cambodia, and Bangladesh—where U.S. goods face tariffs of 90%, 97%, and 74%, respectively—will now see U.S. tariffs of 46%, 49%, and 37% applied to their exports.
China, with a 67% tariff on U.S. products, will now be subject to a 34% U.S. tariff, while India, which imposes a 52% tariff on American goods, will face a 26% reciprocal rate.
In Europe, the European Union’s tariff on U.S. goods stands at 39%, leading to a 20% U.S. tariff in return, while the United Kingdom, Brazil, Singapore, Chile, and Australia—all of which impose 10% tariffs on U.S. products—will see an equivalent 10% tariff on their exports to the U.S.
The tariff adjustments could disrupt supply chains and increase costs for businesses and consumers, particularly in economies that rely heavily on U.S. trade preferences, such as those under the African Growth and Opportunity Act (AGOA).
