World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala has expressed “cautious optimism” regarding former U.S. President Donald Trump’s trade and tariff policies. Okonjo-Iweala urged a measured approach to evaluating Trump’s strategies, emphasizing the importance of observing actual policy outcomes.
“keep calm. Let’s see what policies are enacted and implemented before we get overexcited…, and cautious optimism… the tariffs will be pronounced but look at what is being done first… everybody thought that by today or tomorrow, we’d get… an executive order with 60% tariffs or 30% and so on. So far, we’ve seen the request for a slew of studies and investigations of the various trading partners and various trade agreements to see their impact on the United States…that’s a bit encouraging,” Okonjo-Iweala remarked.
During the discussion, philanthropist David Rubenstein offered his perspective, suggesting that Trump’s transactional style in negotiations makes steep tariff increases less likely. Rubenstein also underscored that global economic growth would benefit most from resolving geopolitical conflicts, particularly in the Middle East and between Russia and Ukraine.
Trump’s approach to trade has notably strained the World Trade Organization. His administration effectively paralyzed the WTO’s highest court by blocking the appointment of new judges, a problem that persists. Furthermore, he imposed tariffs on steel and aluminum imports during his tenure.
Recently, Trump has suggested the possibility of introducing a 10% tariff on all imported goods, raising concerns about further disruption to global trade.
(AP)