Head of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has called upon Washington’s trade partners to maintain composure in the event of Donald Trump’s potential return to the White House and his pledge to impose a 10 percent import tariff. Speaking at the Peterson Institute for International Economics in Washington, Okonjo-Iweala expressed her hope that such measures would not come to pass. However, she cautioned that should Trump proceed with these tariffs, retaliatory actions from other countries could ensue, resulting in a “free-for-all” that would disrupt trade stability and predictability.
In a recent interview with CNBC, the 77-year-old Republican Party presidential candidate referred to himself as a “tariff enthusiast,” asserting that any potential price hikes for American consumers resulting from such measures would be offset by tax cuts. Trump emphasized his firm belief in the economic benefits of tariffs, particularly when confronting exploitation by other nations. Okonjo-Iweala underscored the need for mediation if other countries were to follow suit with similar measures, warning of the detrimental impact on all parties involved. She emphasized that in such a scenario, everyone stands to lose, emphasizing the necessity for clarity to prevent such a situation from materializing.
Throughout his presidency, Trump implemented tariffs, primarily targeting imports from China, in an attempt to pressure Beijing into making concessions. However, this policy ultimately failed to alter the trade balance between the world’s two largest economies. Tariffs were also levied on the European Union, prompting retaliatory taxation on American products. President Joe Biden, Trump’s successor and rival in the November 2024 election, has worked to ease tensions with European allies while maintaining pressure on China.
Version 2: Head of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has issued a plea to Washington’s trade allies, urging them to maintain stability amidst the potential resurgence of Donald Trump in the White House and his proposed imposition of a 10 percent import tariff. Addressing the Peterson Institute for International Economics in Washington, Okonjo-Iweala expressed her sincere hope that such measures would not come to fruition. However, she cautioned that if Trump proceeds with the tariffs, it could trigger retaliatory measures from other nations, leading to an unpredictable and destabilizing trade environment.
In a recent CNBC interview, the 77-year-old Republican presidential candidate referred to himself as a “tariff advocate,” asserting that any potential rise in consumer prices resulting from such tariffs would be counterbalanced by tax cuts. Trump staunchly defended the economic rationale behind tariffs, especially in the face of perceived exploitation by foreign nations. Okonjo-Iweala stressed the importance of mediation if other countries were to follow suit with similar tariffs, emphasizing the potential negative consequences for all parties involved. She emphasized the need for clarity to prevent such a situation from escalating further.
During his presidency, Trump imposed tariffs primarily on imports from China in an attempt to pressure Beijing into making concessions, a strategy that ultimately failed to significantly alter the trade balance between the two economic giants. Tariffs were also imposed on the European Union, prompting retaliatory measures against American goods. President Joe Biden, Trump’s successor and opponent in the November 2024 election, has sought to mend relations with European allies while maintaining a firm stance on China.
