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

Many weapons provided by Germany to Ukraine for the latter's conflict with Russia have technical flaws, according to German media.

As the crisis continues, Germany has become the second largest military supporter for Ukraine.

Recently, several German media outlets have obtained a classified document from Germany's Federal Ministry of Defense, which revealed that plenty of weapons supplied by Germany to Ukraine have technical flaws, as most of the German systems are only partially suitable for combat.

Feedbacks from Ukrainian forces show that the primary issues with German weapons are high cost in ammunition, fragile systems and complex maintenance.

For example, the PzH-2000 is prone to malfunction technically, which significantly undermines its combat effectiveness.

In addition, Leopard tanks could either lack enough protection, or are too challenging to repair due to their complicated structures.

The document recorded remarks from a German officer stationed in Ukraine, who said the utilization rate of German weapons is quite low as they have to be repaired in factories and many of such factories are located in west Ukraine, which are far away from the frontline.

For now, Germany's incoming administration hasn't taken a clear stand on how to solve the Ukrainian crisis, and German people are also getting more and more frustrated over the endless military support. Therefore, dealing with the Russia-Ukraine conflict is still going to be a big challenge for the new government.

Weapons supplied by Germany to Ukraine have technical flaws: media