The World Trade Organization (WTO) Director-General, Ngozi Okonjo-Iweala, has raised serious concerns over the potential ramifications of the United States’ new tariff measures, warning that they could severely disrupt global trade and economic growth.
On April 2, U.S. President Donald Trump introduced sweeping tariffs, including a 14 percent levy on Nigerian goods. Okonjo-Iweala, in a statement issued Thursday, cautioned that these new tariffs, combined with earlier trade restrictions, could shrink global trade by as much as 1 percent this year, marking a significant downgrade from previous growth projections.
“The recent announcements are expected to have far-reaching consequences for global trade and economic growth,” she explained. “Based on our initial analysis, the combination of these new tariffs with prior measures could result in a global contraction of 1 percent in global merchandise trade volumes, a sharp decrease from our earlier forecasts.”
She also warned that escalating trade tensions could lead to retaliatory actions, further hampering international trade flows. Despite these challenges, she reminded the public that most global trade continues to operate under the WTO’s Most-Favored-Nation terms, though that share has dropped from 80 percent to 74 percent since the beginning of the year.
Okonjo-Iweala stressed the importance of international cooperation, urging WTO members to work together to mitigate the negative impact of these tariffs. “Despite these disruptions, the majority of global trade is still governed by the WTO’s Most-Favored-Nation terms,” she stated. “We must collaborate to protect these essential trade principles and avoid exacerbating the situation.”
In her concluding remarks, Okonjo-Iweala reinforced the critical role the WTO plays in ensuring stability in global trade, especially in times of heightened economic tensions. “The WTO was established for moments like this,” she said. “We must use it as a platform for dialogue, to prevent trade conflicts from escalating, and to maintain an open, predictable trading system for the benefit of all.”
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