WTO Chief Ngozi Okonjo-Iweala Warns of Global Economic Fallout as U.S. Slaps New Tariffs on Imports

Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), has raised the alarm over the sweeping tariffs recently announced by the United States, cautioning that the move could derail global trade and stifle economic growth.

In a surprise move on April 2, U.S. President Donald Trump unveiled a comprehensive tariff plan, placing duties on all imports into the country. Nigeria, among the affected nations, will face a 14% tariff on its exports to the U.S.

Reacting to the announcement, Okonjo-Iweala said the WTO Secretariat is “closely monitoring and analysing” the unfolding situation. In a statement released Thursday, she noted that many WTO member nations have already reached out, concerned about the potential ripple effects on their economies and the broader international trade landscape.

“The recent announcements will have substantial implications for global trade and economic growth prospects,” she said. “Our initial estimates suggest that these measures, along with others introduced since the start of the year, could cause global merchandise trade volumes to shrink by around 1% — a steep drop from earlier projections by nearly four percentage points.”

The WTO chief warned that the new tariffs risk triggering a broader trade conflict, with nations potentially engaging in tit-for-tat retaliatory measures. “A tariff war could drag the world economy further into uncertainty,” she cautioned.

Despite the escalating tensions, Okonjo-Iweala pointed out that the majority of international trade — currently 74% — still operates under the WTO’s Most-Favored-Nation (MFN) terms, though that figure has fallen from 80% at the start of the year.

She urged WTO members to defend the rules-based system and avoid actions that could inflame tensions further. “Trade measures of this size can significantly distort global commerce. It is critical that countries manage these pressures responsibly,” she said.

Okonjo-Iweala emphasized that the WTO was built for moments like this — to provide a platform for dialogue, prevent conflict, and promote stability in global trade. She called on member nations to engage constructively and work together toward cooperative solutions.

“This is a defining moment for the multilateral trading system,” she said. “The stakes are high, and we must act with urgency and unity.”