WTO warns of worst global trade disruption in 80 years
The World Trade Organization (WTO) just raised a red flag: global trade is facing its worst disruption in 80 years, thanks to new tariffs shaking up the usual rules.
WTO chief Ngozi Okonjo-Iweala said on Tuesday that trade under the "most favored nation" (MFN) system—where countries promise to treat all partners equally—has dropped from about 80% earlier this year to just 72%.
This big dip comes after US President Trump's tariff hikes, which have made trading a lot less predictable.
Tariff impacts may take time to show
Even with these challenges, there's a bit of good news—the WTO actually bumped up its global trade growth forecast to 0.9%, since the first half of the year was surprisingly strong.
But Okonjo-Iweala said the effects of these tariffs may become clearer in 2026 as current stockpiles run out.
The drop in MFN use hints at more protectionist policies worldwide, making fair and open trade tougher for everyone.