₦airaland Forum

Ongoing Tariff War Is Destroying Global Economy – Okonjo-Iweala-Led World Trade Organisation Warns Donald Trump, Other Leaders

The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has issued a strong warning to world leaders including United States President, Donald Trump, urging them to halt the escalating tariff war which is wreaking havoc on the global economy.

In a press statement she personally released, Okonjo-Iweala expressed deep concerns over the series of trade measures recently announced by the United States, particularly those unveiled on April 2.

She said the WTO Secretariat is closely monitoring the developments and is in active communication with several member states.

“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 said.

She noted that according to preliminary WTO estimates, the latest round of tariffs, combined with protectionist measures introduced earlier this year, could result in a 1% contraction in global merchandise trade volumes in 2025.

This, she said, marks a sharp downward revision of nearly four percentage points from earlier projections.

“This decline is alarming,” Okonjo-Iweala stated. “There is a real risk of a full-blown tariff war, driven by cycles of retaliatory measures that could further depress global trade.”

Despite the recent measures, the WTO chief emphasised that a significant portion of international trade, currently about 74%, still operates under the organization's Most-Favored-Nation (MFN) terms.

However, this figure has dropped from 80% at the beginning of the year, signaling a disturbing trend toward protectionism.

“WTO members must stand together to safeguard these gains,” she urged.

According to her, “Trade measures of this magnitude have the potential to create significant trade diversion effects.

“WTO members must stand together to safeguard these gains.”

“I call on members to manage the resulting pressures responsibly to prevent trade tensions from proliferating.”

Okonjo-Iweala stressed the WTO’s role as a global forum for trade dialogue and dispute resolution.

She encouraged all member countries to use the organisation’s mechanisms to engage constructively and seek cooperative solutions before the situation deteriorates further.

“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

“I encourage Members to utilise this forum to engage constructively and seek cooperative solutions,” she said.

Okonjo-Iweala’s warning comes amid escalating tariff war between the US, China, Canada and other economically powerful countries.

SaharaReporters earlier reported that China announced a 34% tariff on all goods imported from the United States in retaliation for a similar move by the US President Donald Trump.

In a statement published on its Customs website and seen by SaharaReporters, China stated that the U.S. action violates international trade norms.

As the world watches anxiously, trade diplomats and economists alike warn that the outcome of this trade dispute could shape the global economic landscape for years to come.

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She said the WTO Secretariat is closely monitoring the developments and is in active communication with several member States.

President Trump cannot be wrong.

Just like in war, all is fair ....

oldguyman:
President Trump cannot be wrong.

Shut your slave lips.

Brainwashed he-goat.

She finally spoke out.

seunmsg:
She finally spoke out.

She wanted to be diplomatic about it. This is a precarious time for all executives connected to the US in anyway.

Sure

But Nigeria has been charging about 49% in import duties and other kind of stupid charges over the years to discourage importation, make una leave trump alone and produce locally.

Ngozika make Trump catch you

.

So every country needs serious leadership with direction right now if not na suffer o

This headline is misleading and irresponsibly done.

Her message is clear, and clearly to the rest of the world.

Do not escalate this. If you react harshly, the world economy would be in jeopardy.

She is actually urging the rest of the world to halt the escalating tariff war and behave responsibly by not retaliating, as retaliation could depress global trade. Trump has argued that the tariff mirrors the prohibitive tariffs other nations have handed American companies. Those nations have the power to reduce it, as they inaugurated it. Okonjo knows all of these.

So she has not stated that “Trump's tariff war” is destroying the global economy.


Why is Okonjo deliberate in her word choice? It is because she knows nations have to be cautious and that her position as WTO DG is contingent upon Western nations ( esp the US) approval . Since Trump’s return, she has successfully maintained the fragile diplomatic balance- despite Trump’s disposition. Remember, Trump didn’t fancy her emergence. Don’t be naive to think Europe and the UK would deprioritize their relationships with the US to support her leadership, if Trump calls her out.

So if you are proud of her as a Nigerian, then you would agree that it is irresponsible to mischaracterize her position. Trump is combative. The US has significant influence on global trade. No need to add to her burden or cross by creating distraction that jeopardizes her illustrious career and undermine her efforts. You shouldn’t want so.

That said.

which is it? Will Trump’s tariff destroy the US economy or the economy of the other countries?

Someone suggested that businesses should find alternative trading partners. Perhaps Africa. African nations that are struggling with affording basic necessities, including HIV/AIDS medication. Perhaps China, but China would dictate their own terms. Alternatively, Europe could open its economy to China, and risk the potential for China's cheap products to flood their market and shut down their manufacturing.

Someone suggested that they should abandon the US dollar. And the global economy should cling to? Canadian dollars or Naira or yuan or Euro. Thinking the US currency is there by decree is no evidence of right minded thinking. You add the nominal GDP of Germany, UK, France, Italy and Canada… and see what % or fraction of the US’ GDP it amounts to.

For those thinking that the US should be abandoned. Read good books and seek contrast opinions. Not just consuming one-sided poorly baked news.

The news won’t tell you that the UK is very happy with the tariffs coz in the US they now enjoy a price advantage over similar European products, thanks to the lower 10% tariff, compared to Europe’s 20%. To them, it’s a win: of coz, they will not be over excited, but Europe knows they are behind and Trump is putting them in a place, where they are in dire vulnerability. The EU is already clamoring for unity in the union because they know internal disunity is inevitable, and the EU may just disintegrate - as nations go directly to make deals with Trump.

When they can’t trade with the US, UK grows stronger, and while they trade with each other, tariffs imposed by and against countries in the EU becomes inevitable because each nation has to protect its own economy.

it is just foolish to not look out for the interest of your country, or look out for how you can take advantage of what is handed to you. we must hate the leadership, isolate them... when other reasonable nations are on the queue, already cozying up, waiting to fill in that gap.

China has got cheap and high volume products to export - so Europe for now knows that the higher tariff for China benefits them. If the US leadership wants to diminish Europe’s influence, which I think is the intention of Trump, unless Europe properly acknowledges America’s leadership and adhere to America’s guidance… rather than seeking to dictate… Trump could reduce the tariff for China, and Europe would realize brutally, they are unable to compete. The companies know so already. They are not necessarily driven by nationalist sentiment. They are driven by economic interests. If their government implement policies that harm their businesses, they won’t stay idly, governed by a leader who’s willing to destroy their economy just to virtue signal that he’s courageous against Trump.

They will find their way to America, call it expansion… they would establish their businesses in the US to avoid tariffs and ensure continued growth.
It’s not in the EU’s or Canada’s interest that this happens. The leadership in this country are pressing hard, encouraging these companies to diversify their supply chain or reduce dependence on the US. Again, this is a strategy that the EU and Canada have pressed… however, the shift, building new infrastructures to connect to new markets won’t occur without significant costs, which the countries can’t spare unless the businesses are further taxed. Unable to compete, businesses reduce their workforce. Would these businesses be willing to absorb the additional costs, new taxes, and remain viable as they transition? Can the companies remain afloat for the decade such shift might require? Is it not just better to go to America? This is just a bit in the surface of it all.

Nations study and look out for their own interest. Let us pray that Tinubu is staying alert and looking out for Nigeria’s interest too in the global affairs and nationally.

jazzman7711:
Shut your slave lips.

Brainwashed he-goat.

You can never see sarcasm even if it slaps you in the face.

When other countries tariff the US no one feel sorry for the US or complain.

If they believe that then they should all remove their tariff

I don't think we should be electing old people to presidency anywhere
They create mess, and leave the country worse than they met it

If the trade deals were fair, there would not have been a global trade meltdown
Only Trump can tell you to your face that industrial nations have been living in a lie
They are most indebted yet their economies blossom whilst indebted developing nations bleed
This is a wake up call to global economic manipulators.

Make they no deport her o

Please tell them.

I don Dey clear for un eyes, trump fan boyz, a white supremacist mad man as American president

Madam don't mind him...he will soon be eating chaff .... Trump is a bully... he's a Billy 🥺🥺🥺

Mikelarteta:
But Nigeria has been charging about 49% in import duties and other kind of stupid charges over the years to discourage importation, make una leave trump alone and produce locally.

49% ke,

Nigerias average tariffs are around 20% on finished products

The village idiot is destroying the US economy and international relations.

If the world abandon USD as general means of exchange then US will understand that the world is doing them more favour than they are doing the world

Building a $30 trillion economy no be chere kam bia. When America roars, the world cries!

Developers don't know how to react to this.

I'm here for it.

But to import cars from America to Nigeria u go pay wetin fit bankrupt u.
Why the hypocrisy?

At this time my people we need an economist to move the country forward not a politician