The Director-General of the World Trade Organization expressed concerns that the new tariffs imposed by the U.S., in addition to those implemented earlier in the year, could result in a 1% decline in global merchandise trade volumes by 2025. Ngozi Okonjo-Iweala emphasized the risk of a tariff war with retaliatory measures that could further reduce trade. She also highlighted the potential trade diversion effects of the tariffs. The WTO, responsible for overseeing 74% of global trade (down from 80% due to recent tariffs), warned of the negative economic impacts of such measures. European Commission President Ursula Von Der Leyen criticized President Trump's decision to impose universal tariffs on the EU and others, describing it as detrimental to the world economy. Okonjo-Iweala informed member states about the inquiries the WTO received regarding the tariffs and the potential repercussions on international trade. The U.S.'s commitment to escalating tariffs could sideline the WTO and its promotion of free trade.
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