RED ALERT!
WTO warns that protectionism is collapsing global trade prospects.
The World Trade Organization (WTO) has issued a serious warning, indicating a "sharp deterioration" in global trade prospects directly related to the tariff regime of former United States President Donald Trump.
The WTO forecasts a 0.2% decrease in the volume of global merchandise trade in 2025, a drastic contrast to the previous forecast of a 0.8% increase under a "low tariff" scenario.
The steepest decline is expected in North America, with a projected decrease in exports of 12.6% in 2025.
The WTO warns of "serious downside risks," including the possible reimplementation of "reciprocal" tariffs and increasing political uncertainty, which could lead to an even greater contraction of 1.5% in global merchandise trade.
This gloomy forecast contrasts with the healthy growth of global trade in 2024, where merchandise trade increased by 2.9% and commercial services by 6.8%.
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