ABUJA, Nigeria (VOICE OF NAIJA)-The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has issued a warning that the United States’ newly imposed tariffs could have far-reaching consequences for global trade and economic growth.
On April 2, U.S. President Donald Trump announced the introduction of global tariffs on all imports, which include a 14 per cent duty on goods originating from Nigeria.
In a statement released on Thursday, Okonjo-Iweala stated that the WTO is “closely monitoring the situation” and is in active discussions with its member nations to assess the potential economic fallout. She noted that numerous WTO members have raised concerns, prompting the organization to intensify efforts to “address these concerns.”
Okonjo-Iweala cautioned that the new tariffs, alongside earlier trade measures implemented this year, could result in a decline of approximately 1 percent in global trade—significantly revising earlier forecasts.
“The recent announcements will have substantial implications for global trade and economic growth prospects,” she said.
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“While the situation is rapidly evolving, our initial estimates suggest that these measures, coupled with those introduced since the beginning of the year, could lead to an overall contraction of around 1 percent in global merchandise trade volumes this year, representing a downward revision of nearly four percentage points from previous projections.”
She further warned of the potential for worsening trade disputes, noting that the current trajectory could spark retaliatory tariffs and deeper reductions in international trade.
In light of the recent developments, Okonjo-Iweala emphasized that a significant portion of global trade continues to be governed by the WTO’s Most-Favored-Nation terms, even though this proportion has decreased from 80 percent at the beginning of the year to 74 percent.
She urged WTO member states to work collectively and handle the situation with caution to prevent further escalation of trade tensions.
“It is important to remember that, despite these new measures, the vast majority of global trade still flows under the WTO’s Most-Favored-Nation terms.
Our estimates now indicate that this share currently stands at 74 percent, down from around 80 percent at the beginning of the year. WTO members must stand together to safeguard these gains,” she said.
Okonjo-Iweala also noted, “The WTO was established to serve precisely in moments like this — as a platform for dialogue, to prevent trade conflicts from escalating, and to support an open and predictable trading environment.”