The World Trade Organization (WTO) has drastically lowered its global trade projection for 2025, citing mounting trade disruptions due to the tariff policies imposed by former U.S. President Donald Trump. The WTO warns that the ripple effects of these policies are likely to induce broad-based economic slowdowns, with the greatest losses predicted in North America, which is projected to experience the steepest drops in export and import activity.
As per the updated report, merchandise trade volume across the world is now projected to increase by only 1.2%, from the previous estimate of 3.4%. The WTO pointed to lingering tensions between the U.S. and China, rising protectionist measures, and retaliatory tariffs as key drivers of the uncertainty shrouding global markets.
Whereas Asia and Europe are forecast to face modest trade growth, the WTO warns that ongoing volatility would narrow those margins. Supply chain fragmentation, shifting patterns of sourcing, and investor wariness are set to remake trade dynamics for many years to come.
WTO Director-General Ngozi Okonjo-Iweala highlighted the need for multilateral cooperation, asserting that “trade cannot thrive in a world divided by tariffs and distrust.” She called on governments to focus on stability and transparency to prevent further exacerbating the strain on the global economy.
