Resilient Yet Rattled: WTO Insights on Global Trade's Tough Battle Against Tariffs

WTO Chief Affirms Resilience of Global Trade Amidst U.S. Tariff Turmoil

October 28, 2025 — U.S. tariffs hit many imported goods, and the trade system holds strong. Ngozi Okonjo-Iweala, the WTO head, told CNBC in Saudi Arabia that the trade system is "battered and bruised but still standing." Here, each word works close to its partner so the meaning stays clear.

Unprecedented Disruptions but a System Holding Strong

The United States, led by President Donald Trump, acts alone. His move causes what Okonjo-Iweala calls the "greatest disruption of global trade in 80 years." Since early 2025, the U.S. set tariffs on many goods from many lands. These actions raise tension and doubt in global markets, yet the system does not collapse.
"Many think trade is broken because of these U.S. tariffs," she notes. "That view is not right."

The Focus on Trump-Xi Meeting

U.S. President Donald Trump tours Asia. He signs trade deals and pacts as he goes. On Thursday, he will meet Chinese President Xi Jinping. Trump hopes to reach a deal to lower duties and counter-tariffs.
Okonjo-Iweala hopes the meeting goes well. She notes that easing trade fights helps all nations.

Stopping trade splits and fights between the U.S. and China is needed.
A split into two trade groups would hurt world prosperity.
Countries with fewer resources would suffer the most.

WTO’s Mixed Forecast for Global Trade

The WTO now sees global trade growing by 2.4% in 2025 instead of 0.9% as it thought in August. In contrast, the view for 2026 is weak at 0.5%, down from 1.8% before.
The WTO points to two ideas for this drop:

A cooling world economy
The effect of high tariffs slowing trade

Factors Fueling Trade Growth in Early 2025

Trade grew by 4.9% in the first half of 2025. U.S. buyers made extra purchases before more tariffs came in. Good economic signals—such as low inflation, sound government budgets, and strong job markets—helped raise incomes and spending. Fast growth in new markets also helped trade move up.

AI Grows in Global Trade

A new force in trade is the rise of artificial intelligence. AI goods include chips, servers, and telecom gear. AI trade made up nearly half of the growth in the first half of the year and climbed 20% from 2024.
Global contest for AI runs as follows:

The United States contributed about one-fifth of the AI trade growth.
Asia drove nearly two-thirds of the increase in AI trade.

Conclusion

Global trade faces many hurdles from disputes and tariffs. Still, the WTO chief holds a cautious hope. The system has survived heavy shocks. It may grow stronger if the U.S. and China calm their tensions and work together on trade. Steps to ease trade fights help not only the nations in question but also many others, especially those with smaller economies.

For further updates on global trade developments and market insights, stay tuned to CNBC.

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