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WTO Sees Full Impact of US Tariffs Hitting Trade Growth in 2026
The World Trade Organization projects a significant slowdown in global goods trade growth in 2026, driven by lingering effects of US tariffs imposed during Donald Trump's presidency.
- The World Trade Organization forecasts a sharp decline in global merchandise trade growth, estimating a rise of just 2% in 2026 due to US tariffs.
- US tariffs, initially imposed by President Donald Trump, are expected to have a delayed negative impact on international trade, affecting commerce well into 2026.
- Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, indicated that the resilient trade performance in early 2025 belies the forthcoming challenges posed by these tariffs.
- The slowdown in trade growth may lead to broader economic repercussions, affecting countries reliant on exports and international supply chains.
Why It Matters
This projected slowdown highlights the ongoing economic repercussions of US trade policy, particularly impacting countries dependent on trade growth. The effects of tariffs could exacerbate existing supply chain issues and economic uncertainty. Observers should monitor adjustments in international trade agreements and policies as nations respond to these challenges.