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| Donald Trump's tariffs will make global trade shrink, says WTO | Donald Trump's tariffs will make global trade shrink, says WTO |
| (32 minutes later) | |
| The World Trade Organization (WTO) has forecast that global trade will fall this year because of US President Donald Trump's tariffs. | |
| It added "severe downside risks", including reciprocal tariffs and political uncertainty, could lead to an even sharper decline in global goods trade. | |
| "The decline is expected to be particularly steep in North America," the WTO said, forecasting trade to drop by more than a tenth in that region. | |
| Ngozi Ikonjo Iweala, the WTO director general, called the "decoupling" of the US and China "a phenomenon that is really worrying to me". | |
| The WTO previously expected global goods trade to expand by 2.7% in 2025 but it now forecasts it will fall by 0.2%. | |
| Chief Economist Ralph Ossa said: "Tariffs are a policy lever with wide-ranging, and often unintended consequences." | |
| "Our simulations show that trade policy uncertainty has a significant dampening effect on trade flows, reducing exports and weakening economic activity," he added. | "Our simulations show that trade policy uncertainty has a significant dampening effect on trade flows, reducing exports and weakening economic activity," he added. |
| A baseline tariff of 10% on almost all foreign imports to the US kicked in on 5 April, although some countries and goods are exempt. | A baseline tariff of 10% on almost all foreign imports to the US kicked in on 5 April, although some countries and goods are exempt. |
| China has a much higher tariff, which now totals 145%. | China has a much higher tariff, which now totals 145%. |
| The US stock market slid on opening on Wednesday with the big indexes falling amid the ongoing uncertainty. | The US stock market slid on opening on Wednesday with the big indexes falling amid the ongoing uncertainty. |
| Despite the prediction of plunging trade with the US, the WTO expects some regions will still see trade growth. | Despite the prediction of plunging trade with the US, the WTO expects some regions will still see trade growth. |
| It said Asia and Europe are still "projected to post modest growth in both exports and imports this year." | It said Asia and Europe are still "projected to post modest growth in both exports and imports this year." |
| "The collective contribution to world trade growth of other regions would also remain positive," the WTO report said. | "The collective contribution to world trade growth of other regions would also remain positive," the WTO report said. |
| Trump's tariff announcements and climbdowns | |
| Since Trump's inauguration in January there has been a flurry of announcements on tariffs. | |
| The US president said the import taxes will encourage US consumers to buy more American-made goods, increase the amount of tax raised, and lead to huge levels of investment in the country. | |
| However, critics say bringing manufacturing back to the US is complicated and could take decades and that the economy will struggle in the meantime. | |
| Trump has also backtracked on many of his announcements. | |
| Just hours after levies against roughly 60 of America's trading partners kicked in earlier this month, Trump said he was authorising a universal "lowered reciprocal tariff of 10%" while negotiations continued. | |
| And in the face of mounting opposition from politicians and the markets, Trump announced a 90-day pause on tariffs to all countries bar China. | |
| In March, the governor of the Bank of England has warned the Trump's tariffs could mean less money in UK consumers' pockets. |