Donald Trump’s tariffs will send international trade into reverse this year, depressing global economic growth, the World Trade Organization has warned.
In its latest snapshot of the global trading system, the Geneva-based institution says it had previously expected goods trade to expand by a healthy 2.7% this year. As a result of Washington’s trade policy, it is now forecasting a 0.2% decline.
Presenting the forecasts, the WTO’s director general, Ngozi Okonjo-Iweala, said she was particularly concerned about the “decoupling” of the US and China, calling it “a phenomenon that is really worrying to me”.
She said trade between the two geopolitical rivals was expected to plunge by 81-91% without exemptions for tech products such as smartphones – saying this was “tantamount to a decoupling of the two economies” and would have, “far-reaching consequences”.
Okonjo-Iweala said the WTO was canvassing its member countries about whether to convene an emergency meeting to discuss the situation.
In its report, the organisation says: “The outlook for global trade has deteriorated sharply due to a surge in tariffs and trade policy uncertainty.”