Director-General of the World Trade Organization (WTO) Ngozi Okonjo-Iweala warned that the new tariffs announced by the United States along with those introduced at the start of the year could lead to a contraction of around 1% in global merchandise trade volumes in 2025.’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,’ Okonjo-Iweala said in a statement.She warned that the tariffs have the potential to create significant trade diversion effects.’Many of you have been in touch about the U.S. announcement on tariffs, asking for the Secretariat to provide an economic analysis of the impact of these tariffs and any potential reaction on your trade,’ Okonjo-Iweala said.The WTO administers 74% of global trade, down from around 80% at the beginning of the year due to recent tariffs, according to the organization.World leaders have warned of the potential negative economic consequences of the tariffs.On Wednesday, US President Donald Trump announced a new set of levies, imposing a 10 percent baseline tariff on all imports starting on April 5 and slapping individualized reciprocal higher rates on those trading partners with which the United States ‘has the largest trade deficits,’ which will kick in on April 9. (
