Global trade faces threats as WTO, IMF sound alarm over U.S. tariffs

The World Trade Organization (WTO) and the International Monetary Fund (IMF) have voiced concerns over the economic fallout from new tariffs introduced by the Trump administration, warning that these policies may severely disrupt global trade and hinder economic growth.

In a statement issued Thursday, the WTO projected that U.S. tariffs, including those introduced earlier this year, could shrink global goods trade by 1 percent in 2025, a marked departure from its earlier forecasts, which had anticipated trade expansion.

The WTO's latest Global Trade Outlook report, published in October 2024, had projected a 3 percent growth in world merchandise trade for 2025. However, escalating geopolitical tensions and mounting economic policy uncertainties are now casting significant doubt on that forecast.

WTO Director-General Ngozi Okonjo-Iweala warned that these tariff measures could escalate into a full-blown trade war, prompting retaliatory actions from other countries and further harming global trade. She emphasized that the WTO is actively monitoring the situation and collaborating with member countries to address concerns about the potential impact of these measures.

Okonjo-Iweala highlighted that although the majority of global trade continues under the WTO's Most-Favored-Nation (MFN) terms, its share has fallen from approximately 80 percent earlier this year to 74 percent currently, reflecting increasing fragmentation in global trade.

"The WTO Secretariat is closely monitoring and analyzing the measures announced by the United States on April 2, 2025," Okonjo-Iweala stated. "Many members have reached out to us, and we are actively engaging with them to address their concerns about the potential impact on their economies and the global trading system," she added.

Meanwhile, Kristalina Georgieva, managing director of International Monetary Fund (IMF), echoed similar concerns on Thursday, emphasizing the risks to global economic stability posed by the U.S. tariffs.

While the IMF continues to assess their macroeconomic impact, she warned that these measures could worsen the already weak global growth outlook and create greater uncertainty.

"We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth," Georgieva said in a statement. "It is important to avoid steps that could further harm the world economy. We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty," Georgieva said.

U.S. President Donald Trump's newly announced tariffs, set to take effect Saturday, impose a 10 percent baseline on all imports, with additional levies targeting nations with the largest trade deficits.

Global trade faces threats as WTO, IMF sound alarm over U.S. tariffs

Global trade faces threats as WTO, IMF sound alarm over U.S. tariffs

Global trade faces threats as WTO, IMF sound alarm over U.S. tariffs

Global trade faces threats as WTO, IMF sound alarm over U.S. tariffs

Global trade faces threats as WTO, IMF sound alarm over U.S. tariffs

An Iranian delegation led by Foreign Minister Seyed Abbas Araghchi arrived in Pakistan on Friday night to discuss regional developments and ongoing peace efforts, a spokesman for Pakistan's Ministry of Foreign Affairs said.

Tahir Andrabi, the spokesman, said in a social media post that Araghchi is scheduled to meet Pakistan's leadership to exchange views on the evolving regional situation and efforts aimed at promoting peace and stability.

Upon arrival, the Iranian foreign minister was received by Pakistani Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, Chief of Defense Forces and Chief of Army Staff Field Marshal Syed Asim Munir, along with other senior officials.

Araghchi currently has no negotiation plans with U.S. representatives, but will convey messages to the U.S. side through Pakistani mediators, according to Iranian sources on Friday.

However, the White House said Friday that U.S. President Donald Trump's envoy Steve Witkoff and son-in-law Jared Kushner are heading to Pakistan for talks with Araghchi this weekend.

U.S. Vice President JD Vance, who led the U.S. negotiating team during the first round of talks in Pakistan earlier this month, is not currently planning to attend the upcoming talks, White House Press Secretary Karoline Leavitt said, adding he will be standing by and consulting Trump alongside Secretary of State Marco Rubio.

Earlier in the day, Araghchi said in a social media post that he was embarking on a regional tour that includes stops in Islamabad, Muscat and Moscow. Araghchi emphasized that the purpose of the visit is to closely coordinate with partners on bilateral affairs and to consult on the regional situation. He also noted that Iran's neighbors are a priority for Iran.

Iranian delegation led by FM arrives in Pakistan