Global Trade in Chaos! WTO Chief Sounds Alarm as Tariffs Slash World Economy

 World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala has expressed deep concern over U.S. President Donald Trump’s aggressive tariff policies, warning they could shrink global trade in goods by 0.2% in 2025. 

The announcement follows Trump’s early April imposition of “reciprocal” tariffs on imports from over 180 countries, sending shockwaves through markets and straining relations with trading partners like China, the EU, and Canada.

Okonjo-Iweala highlighted the tariffs’ ripple effects, noting disruptions in supply chains and rising costs for consumers worldwide. “These policies threaten the stability of global trade,” she said at a Geneva press conference, urging dialogue to avert a deeper economic downturn.

 The WTO’s forecast comes amid a tense standoff with China, which retaliated with 84% tariffs on U.S. goods, escalating fears of a trade war. European leaders, including French President Emmanuel Macron, have criticized the tariffs as harmful to both U.S. and EU economies, with Macron calling them “incomprehensible” in a February 2025 CNN interview.

Analysts warn that small businesses, like Germany’s hand-crafted nutcracker producers, face severe losses due to reduced U.S. demand. As global trade news 2025 dominates headlines, the WTO’s plea for cooperation underscores the urgent need to navigate this escalating economic crisis.