By Olaitan Ibrahim
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.
A source 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 a news outlet, 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.