Donald Trump's tariff plans will make global trade reduce this year, the World Trade Organization said Wednesday, since it warned about the “unintended consequences” of the changes.
Commercial decreases will be particularly steep in North America even without the most rigid tariffs, he said, and exports are expected to fall this year at 12.6 percent and imports by 9.6 percent.
He said that it is likely that the volume of trade of goods worldwide decreases by 0.2 percent for 2025 due to Trump's changing rates and their confrontation with China, and could fall more if it follows its tariffs “more hard reciprocal” threatened.
The trade of goods around the world would fall by 1.5 percent if Trump continues to intensify its tariffs on nations that are defended with reciprocal import rates, said the WTO, mainly due to the impact of uncertainty on business confidence.
Trump suspended the most difficult set of rates for 90 days earlier this month, so more than 70 countries have the opportunity to address the commercial concerns of the United States. Meanwhile, it is increasing taxes on Chinese imports to 145 percent and participates in a long round trip with Canada and Mexico on tariffs on their goods.
Despite the 90-day pause, “the lasting uncertainty threatens to act as a brake for global growth, with serious negative consequences for the world, the most vulnerable economies in particular,” said the CEO of the WTO, Ngozi Okonjo-Iweala, in a statement.
“Our simulations show that the uncertainty of commercial policy has a significant damping effect on commercial flows, reducing exports and weakening economic activity,” said the chief economist of the WTO, Ralph Ossa, in the statement.
“In addition, tariffs are a policy lever with broad consequences that are not intentionally. In a world of growing commercial tensions, a clear vision of these compensation is more important than ever.”
