The World Trade Organization warns that Donald Trump’s tariff will get “severe negative risks” to global trade
The World Trade Organization (WTO) has issued new expectations on global trade expectations, warned that the definitions offered by the administration of President Donald Trump have deteriorated global trade, and warned that global trade sizes may shrink more if the suspended tariff was re -recruited.
There a reportTrade in goods is expected to shrink by 0.2 %, which is different from its dropping at the beginning of the year, when the World Trade Organization expects to continue to grow, by 2.7 %. The new expectations show a significant decrease from the good trade for the past year, which has grown by 2.9 %.
North America is expected to face a significant decrease in commodity trade this year, with expectations expected by 12.6 %.
The World Trade Organization added that there is a risk that the decline will rise by 1.5 % if the suspended tariffs return to work and the impact of uncertainty in commercial policies.
Definition decisions bring pain
Ngzi okonjo-ewela, Director of the World Trade Organization, She shared her fears In this regard, “I am very concerned about the uncertainty surrounding the commercial policy, including confronting the United States of China.”
She pointed out that the parked customs tariff helped reduce pressure, but the uncertainty that comes with it threatens to impeding global growth, with severe negative consequences for the world, the most vulnerable economies in particular.
Okonjo-Eyala talked about the relationship that has long ago between trade and economic expansion, noting that the unrest in global trade flow can engage in financial markets and the broader economic sectors. “We must ask ourselves: How can we protect the poorest countries from these shocks?” She added.
According to the World Trade Organization, this new estimate depends on the measures that were established at the beginning of this week, which are the definitions that are already suffering and continuous suspension for 90 days for the mutual tariffs of specific countries other than China. According to the report, the revised contraction of contraction by 0.2 % is approximately three percentage points less than the “low tariff” of the organization, which shows the extent of the global trade environment.
The United States and China are the largest part of global trade
Ralph Awsa, chief economist at the World Trade Organization, He told reporters The ongoing trade conflict between China and the United States is expected to lead to a “radical contraction” of trade between economic giants. He also echoed the feelings of the general manager about the impact of the ripple that you will get on other global markets.
The report also indicates that the effects of recent commercial policy attacks are likely to vary widely across the regions. According to what was reported, Asia and Europe contribute positively to global trade, although its impact is low. For example, Asia’s contribution to the growth of global trade decreased by half to 0.6 percentage points under the current circumstances.
Moreover, the change in the United States of Chinese trade is expected to “large commercial transformation”, according to the World Trade Organization, which raises fears that the third markets may face an increase in competition from Chinese exports that seek to obtain alternative destinations.
Cryptopolitan Academy: Do you want to develop your money in 2025? Learn how to do this with Defi on our next electronic performance. Keep your place
