WTO warns: U.S. tariff policy may cause global merchandise trade to shrink by 1% this year

On the 3rd local time, the WTO issued a statement on the U.S. tariff policy. The WTO secretariat said it was closely following and analysing the tariff policies issued by the United States and responding to questions from WTO members about the possible impact of these policies on their economies and the global trading system. The WTO expects U.S. tariffs to have a significant impact on global trade and economic growth prospects. Preliminary analysis suggests that these policies, combined with measures introduced since the beginning of the year, could lead to an overall contraction of about 1 percent in global merchandise trade this year, nearly four percentage points lower than previous forecasts. WTO Director-General Iweala is deeply concerned about this and fears that it could escalate into a tariff war and a series of retaliatory measures, leading to a further decline in global trade. At a time when most global trade is still conducted under the WTO’s most-favored-nation (MFN) provisions, Iweala called on WTO members to unite to defend these gains and prevent trade tensions from escalating.