The World Trade Organization (WTO) reported on April 16 that US tariff policies have significantly worsened global trade prospects. Under current tariffs, global goods trade is projected to decline by 0.2% in 2025, nearly 3 percentage points lower than the forecast in a low-tariff scenario. 

North America faces the sharpest drop, with exports expected to fall by 12.6%. While Asia and Europe remain key contributors to trade growth, their outlooks have been downgraded. Asia’s exports and imports are each forecast to rise by 1.6%, while Europe’s exports and imports may grow by 1.0% and 1.9%, respectively. 

However, the WTO warns that escalating "reciprocal tariffs" and policy uncertainty could worsen the decline, potentially slashing global trade by 1.5% and disproportionately harming least-developed nations.

The report also highlights risks to services trade, now projected to grow just 4% in 2025, down 1 percentage point from earlier estimates. 

WTO Director-General Ngozi Okonjo-Iweala expressed deep concern over trade policy uncertainty, urging members to foster fair competition and streamline decision-making to mitigate economic damage, especially for vulnerable economies.