The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has raised concerns about the impact of new tariffs imposed by U.S. President Donald Trump. On April 2, 2025, Trump announced significant trade levies on multiple countries, targeting the European Union, China, India, and Cambodia with tariffs ranging from 20% to 49%. Dr. Okonjo-Iweala confirmed that the WTO is closely monitoring the situation and is actively engaging with members to assess the potential consequences on the global economy.
Trump’s tariffs were introduced as part of a broader trade offensive against what he labeled as “foreign cheaters,” an assertion that has sparked global concerns. The new measures include a 20% tariff on the EU, 34% on China, 26% on India, and a steep 49% on Cambodia. The WTO has received numerous inquiries from its members regarding the economic impact of these tariffs, and Dr. Okonjo-Iweala emphasized that the situation is being closely monitored.
Dr. Okonjo-Iweala highlighted the significant consequences of the tariff impositions, predicting a contraction in global trade. According to the WTO’s initial estimates, these tariffs, combined with other trade measures implemented since the beginning of 2025, could lead to a 1% decline in global merchandise trade volumes. This represents a sharp downward revision of nearly four percentage points from earlier projections, underscoring the negative economic ramifications of the new tariffs.
The WTO Chief expressed concerns over the potential for these tariffs to escalate into a full-blown trade war. She warned that retaliatory measures could further reduce global trade, exacerbating the negative effects on global economic growth. The situation remains fluid, but the WTO is actively analyzing and preparing for the evolving trade dynamics.