Head of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has called for calm among Washington’s trade partners in anticipation of a potential return of Donald Trump to the White House and his proposed implementation of a 10 percent import tariff. Speaking at the Peterson Institute for International Economics in Washington, Okonjo-Iweala expressed her earnest hope that such measures would not materialize. However, she warned that should Trump proceed with the tariffs, it could trigger retaliatory actions from other countries, leading to a disruptive and uncertain global trade landscape.
In a recent interview with CNBC, the 77-year-old Republican presidential candidate described himself as a “proponent of tariffs,” arguing that any potential increase in consumer prices resulting from such tariffs would be offset by tax reductions. Trump reaffirmed his strong belief in the economic benefits of tariffs, particularly in addressing perceived exploitation by foreign nations. Okonjo-Iweala emphasized the importance of mediation should other countries choose to respond with similar tariff measures, highlighting the potential negative repercussions for all parties involved. She stressed the necessity for clear communication to prevent further escalation of trade tensions.
During his tenure, Trump imposed tariffs primarily on imports from China in an effort to compel Beijing to make concessions, a strategy that ultimately failed to significantly alter the trade dynamics between the two economic powerhouses. Tariffs were also levied on the European Union, prompting retaliatory measures targeting American products. President Joe Biden, Trump’s successor and rival in the November 2024 election, has worked to repair relations with European allies while maintaining pressure on China.