WTO and IMF warn of global trade disruptions a new U.S. tariffs

The World Trade Organization and the International Monetary Fund are raising red flags over the economic fallout from new U.S. tariffs introduced by the Trump administration.

The WTO now projects global goods trade could shrink by 1 percent in 2025— a stark reversal from earlier growth forecasts. Director-General Ngozi Okonjo-Iweala warns these tariffs could spark a trade war, with countries retaliating and further disrupting global markets.

Meanwhile, IMF Chief Kristalina Georgieva echoed similar concerns, saying these measures pose a serious risk to global economic stability, especially at a time of sluggish growth.

The new tariffs, set to take effect Saturday, include a 10 percent baseline on all imports, with additional levies targeting nations with the largest trade deficits. Both organizations urge the U.S. and its trading partners to resolve trade tensions to avoid deeper economic uncertainty.