The global trade war with its persistent barrage of tariff developments provides both challenges and opportunities, according to Ngozi Okonjo-Iweala, the Director General of the World Trade Organisation.“Trade is facing very challenging times right now and it’s quite difficult,” Okonjo-Iweala said Tuesday in Tokyo. “But I also feel that there are many important opportunities in trade that we need to look forward to, and we should try to use this crisis as an opportunity to solve the challenges we have and take advantage of the new trends in trade.”
The WTO issued updated forecasts in April that estimate the volume of world merchandise trade will decline by 0.2% in 2025 — almost three percentage points lower than it would have been without the US-led trade war. Trade is forecast to rebound by 2.5% in 2026.
In her remarks ahead of a meeting with Japanese Prime Minister Shigeru Ishiba, Okonjo-Iweala cited the tariffs including the so-called reciprocal ones imposed by the US as challenges to global commerce. She also thanked Japan, which she called a trade powerhouse, for its consistent support of the WTO and the multi-lateral trading system.Ishiba reciprocated that sentiment, saying, “We pay respect for your strong leadership to maintain multilateral trade system.”
The WTO issued updated forecasts in April that estimate the volume of world merchandise trade will decline by 0.2% in 2025 — almost three percentage points lower than it would have been without the US-led trade war. Trade is forecast to rebound by 2.5% in 2026.
In her remarks ahead of a meeting with Japanese Prime Minister Shigeru Ishiba, Okonjo-Iweala cited the tariffs including the so-called reciprocal ones imposed by the US as challenges to global commerce. She also thanked Japan, which she called a trade powerhouse, for its consistent support of the WTO and the multi-lateral trading system.Ishiba reciprocated that sentiment, saying, “We pay respect for your strong leadership to maintain multilateral trade system.”
The two are meeting a day after the US and China reached a truce with a substantial cut in tariffs, a development that lifted financial markets. The Trump administration’s tariff campaign has been disrupting the global economic order as nations compete for a deal with the US rather than pushing for multilateral trade pacts.
Japan’s top trade negotiator Ryosei Akazawa on Tuesday didn’t comment on the deal between Tokyo’s two biggest trading partners, while noting that he’ll continue to monitor trade developments closely. Japan is in the middle of its own trade talks with the US as it seeks a reprieve from all the tariffs imposed by the US.
