WTO raises concerns over U.S. tariffs, warns of global trade war

The World Trade Organisation (WTO) on Friday April 4, 2025, says it is monitoring the new tariffs imposed by the United States President, Donald Trump.

The WTO Secretariat revealed this following new trade measures announced by the U.S. government on April 2, 2025.

Countries across the world are worried about the impact of the new tariffs.

Many U.S. trading partners are already planning countermeasures against the Trump’s administration policy

The WTO Director-General, Dr. Ngozi Okonjo-Iweala, made the concerns known in a statement on Friday.

She said several WTO members have expressed serious concerns about the development.

According to her, the secretariat is engaging with concerned members to address their questions.

She explained that the organisation is analysing the possible effects on global trade.

Dr. Okonjo-Iweala said the announcement could slow global economic growth.

“Our early estimates show a likely 1% drop in global merchandise trade this year,” she said.

She added that the figures represent a sharp revision from earlier forecasts.

Earlier projections had put global trade growth at nearly 5% this year.

She warned that the current situation could escalate into a tariff war.

She said retaliatory measures by affected countries may worsen global trade conditions.

“I am deeply concerned about the risks of further trade decline,” she said.

The WTO boss added that such a trend could destabilise the global trading system.

She urged WTO members to act responsibly in managing the pressure.

She said the new tariffs could cause serious trade diversion effects.

Despite the measures, she noted that 74% of global trade still follows WTO’s Most-Favoured-Nation (MFN) rules.

She pointed out that this is a decline from 80% recorded at the start of the year.

Okonjo-Iweala called on member countries to protect gains made under the MFN system.

She reminded them of the WTO’s role as a platform for resolving trade issues.

“The WTO was created to help avoid trade conflicts,” she said.

She encouraged member countries to use the platform for dialogue.

She said peaceful negotiations remain the best solution in the current situation.

She advised members to seek cooperative approaches to global trade challenges.

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