The World Trade Organization (WTO) is closely monitoring the measures announced by the United States on April 2, 2025, according to a statement from Dr. Ngozi Okonjo-Iweala, the WTO Director-General. "The WTO Secretariat is closely monitoring and analysing the measures announced by the United States on April 2, 2025. Many members have reached out to us and we are actively engaging with them in response to their questions about the potential impact on their economies and the global trading system," she stated.
Dr. Okonjo-Iweala expressed concern regarding the potential implications for global trade and economic growth. "The recent announcements will have substantial implications for global trade and economic growth prospects," she remarked. Initial estimates from the WTO suggest that these measures may result in a contraction of around 1% in global merchandise trade volumes this year, a figure that represents 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 lead to further declines in trade,” she warned.
Though the global trading system faces challenges, Dr. Okonjo-Iweala emphasized the importance of the WTO's framework. "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 (MFN) terms,” she noted. Current estimates place the share of MFN trade at 74%, a decrease from approximately 80% at the start of the year. She called for unity among WTO members to protect these achievements.
Trade diversion effects could arise from these measures, and Dr. Okonjo-Iweala urged responsible management of associated pressures to avoid escalating trade 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,” she stated. "I encourage Members to utilize this forum to engage constructively and seek cooperative solutions."