The World Trade Organization (WTO) has downgraded its global trade forecast, citing uncertainty surrounding US President Donald Trump’s tariff policies.

Global trade in goods is expected to decrease by 0.2% this year, with a potential 1.5% slump if the US imposes its toughest tariffs on most nations.

Key Impacts:

• North America: Exports expected to fall 12.6%, imports by 9.6%
• Global Growth: Uncertainty threatens to slow global growth, negatively impacting vulnerable economies
• Trade Policy: Tariffs have wide-ranging and often unintended consequences

Tariff Developments:

• Trump suspended the toughest tariffs for 90 days to allow over 70 countries to address US trade concerns
• Taxes on Chinese imports increased to 145%
• Ongoing disputes with Canada and Mexico over tariffs

Expert Insights:

• “The enduring uncertainty threatens to act as a brake on global growth,” said WTO Director-General Ngozi Okonjo-Iweala
• WTO Chief Economist Ralph Ossa noted that trade policy uncertainty significantly dampens trade flows and weakens economic activity.