Investing.com — The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, issued a stark warning against potential trade wars on Thursday. During a debate at the World Economic Forum in Davos, Okonjo-Iweala discussed the potential fallout from retaliatory trade measures such as those threatened by U.S. President Donald Trump.
The WTO chief emphasized the severe global implications of tit-for-tat trade wars. She stated that if such a situation were to arise, with tariffs ranging from 25% to 60%, the world could return to the economic conditions of the 1930s. This scenario, she warned, could lead to double-digit losses in global GDP, which would be catastrophic for worldwide economic growth.
“Everyone will pay,” Okonjo-Iweala said, underlining the universal impact of such trade disputes. Her comments come amidst growing concerns about escalating trade tensions and their potential to disrupt global economic stability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.