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.
