The World Trade Organization (WTO) has downgraded its trade growth forecast for 2025, predicting a decline of 0.2%, down significantly from the previous 3% estimate. This reduction reflects growing uncertainty, with escalating US-China trade tensions playing a major role. Increased tariffs, potentially reaching an additional 1.5% if further implemented, are expected to have a significant negative impact on global economic growth. WTO Director-General Ngozi Okonjo-Iweala expressed concern about the impact of trade policy uncertainty, emphasizing that this uncertainty poses a substantial threat to global economic stability. She highlighted that while there’s been some relief from tariffs due to a 90-day pause, it is crucial to address the underlying uncertainty to prevent further negative impacts on the world’s economies, especially those facing significant challenges.