The World Trade Organization’s director-general, Ngozi Okonjo-Iweala, expressed concerns on Tuesday regarding a proposal by U.S. presidential candidate Donald Trump to impose a 10% import tariff.
She warned that such a move could trigger retaliation from other countries, leading to a “lose-lose” scenario and potentially destabilizing the global trading system.
Okonjo-Iweala emphasized that implementing such tariffs would violate WTO rules and likely provoke a tit-for-tat response from other member nations.
Addressing an event at the Peterson Institute for International Economics in Washington, Okonjo-Iweala expressed hope that such a scenario could be avoided.
She highlighted the importance of upholding the principles of free trade and avoiding actions that could disrupt the global economic order.
The director-general’s remarks come amid growing uncertainty over the future of international trade policy, particularly in the context of the upcoming U.S. presidential election.
Trump, known for his protectionist stance on trade, has previously criticized the WTO and advocated for measures aimed at protecting American industries.
During his tenure, Trump’s administration imposed tariffs on a wide range of imports, sparking trade disputes with several countries, including China and the European Union.
These trade tensions have contributed to concerns about the stability of the global trading system and its ability to facilitate economic growth and development.
