The tariffs announced by the United States could cause a 1% contraction in global merchandise trade by 2025, according to World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala. She warned of the negative impact of these measures, coupled with the tariffs introduced earlier this year, which have weakened international trade.

“I am deeply concerned by this decline and the possibility of an escalation into a tariff war with a cycle of retaliation”, Okonjo-Iweala stated. She warned that these decisions could generate trade diversion effects and exacerbate global economic instability.
According to the WTO, its management of global trade has fallen from 80% to 74% so far this year, reflecting the impact of recent tariffs. This has raised alarms among world leaders, who fear an economic crisis resulting from the restrictions imposed by Washington.

European Commission President Ursula Von Der Leyen called the measure a “severe blow” to the global economy. The European Union and other countries have expressed concern about the repercussions of these tariffs, which could trigger a chain reaction of trade restrictions.

Although the WTO typically avoids commenting on its member countries’ trade policies, Okonjo-Iweala called on countries to act responsibly. Her concern is that trade tensions will continue to escalate, seriously affecting global economic growth and the stability of international markets.
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