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Tariffs Cause 'Unprecedented' Disruption to Global Trade System

The Straits Times

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September 04, 2025

WTO Chief Also Voices Concern at US Plans to Cut Funding to Organisation, Other Bodies

GENEVA - The share of global trade done on WTO terms has fallen to 72 per cent and could fall further, amid the biggest disruption to the international trading system since World War II, the director-general of the World Trade Organisation said on Sept 2.

Since US President Donald Trump began imposing higher import tariffs in 2025 on most trading partners, the share of global trade conducted under the WTO's most favoured nation (MFN) terms has fallen from about 80 per cent, according to WTO data.

The principle requires WTO members to treat others equally and the decline has stoked concerns that the 30-year-old organisation set up to uphold free trade is being sidelined.

"We're experiencing the largest disruption to global trade rules, unprecedented in the past 80 years," Dr Ngozi Okonjo-Iweala told Reuters at the start of her second term at the helm of the Geneva-based trade watchdog.

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