The World Trade Organization (WTO) has expressed deep concerns over the potential impact of recent trade measures announced by the United States on April 2, 2025. According to WTO estimates, these measures, combined with others introduced since the start of the year, could result in a 1% contraction in global merchandise trade volumes, marking a downward revision of nearly four percentage points from previous projections.
“I’m deeply concerned about this decline and the potential for escalation into a tariff war, with a cycle of retaliatory measures that could further depress global trade,” Dr Mrs Ngozi Okonjo-Iweala stated.
The WTO Secretariat has been closely monitoring the situation and engaging with concerned members who have reached out regarding the potential economic consequences and disruptions to the global trading system.
Despite these developments, the WTO reaffirmed that the majority of global trade continues to operate under Most-Favored-Nation (MFN) terms, though this share has declined to 74% from 80% at the beginning of the year. The organization urged members to stand together in preserving the integrity of the global trading framework.
The WTO also warned that the scale of these trade measures could lead to significant trade diversion effects, urging nations to handle the resulting pressures responsibly to prevent escalating tensions.
“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,” the organization emphasized. “We encourage Members to use this forum constructively to seek cooperative solutions.”
