Global Trade Faces Biggest Disruption in 80 Years, Says WTO Chief

The World Trade Organization (WTO) has raised concerns about a major shake-up in global trade rules, with tariffs playing a key role in what the organization calls the most significant disruption in eight decades.
 
WTO Director-General Ngozi Okonjo-Iweala revealed that only 72 percent of global trade is now conducted under the organization’s 'Most Favoured Nation' (MFN) terms, down from 80% earlier this year. MFN rules require WTO members to treat all trading partners equally, and the decline signals a growing shift toward more protectionist trade policies.
 
Speaking at the start of her second term, Okonjo-Iweala pointed to recent tariff hikes—especially those initiated by the United States under President Donald Trump, as a major contributor to this decline. “We’re experiencing the largest disruption to global trade rules, unprecedented in the past 80 years,” she said in an interview with Reuters. “It’s not surprising that some are questioning the predictability of the global trading system.”
 
Despite the challenges, the WTO remains optimistic. As long as the majority of trade continues under MFN terms, Okonjo-Iweala believes the system retains its strength: “We’re a long way from 50 percent, and that’s something to recognize.”
 
The WTO has also revised its global trade growth forecast for 2025, increasing it from 0.2 percent to 0.9 percent, due to a surge in shipments earlier this year. However, the WTO warns that the full impact of tariffs may only become visible in 2026, as warehouse inventories deplete and trade patterns normalize. “We still anticipate some growth,” Okonjo-Iweala said, “but we’ll have to see how the situation evolves in the coming year.”