The World Trade Organization (WTO) has significantly reduced its 2026 forecast for global merchandise trade growth to 0.5%, down from an earlier projection of 1.8% in August. This change underscores the anticipated delayed effects of tariffs implemented by U.S. President Donald Trump, reflecting a more challenging trade environment.

Expressing concerns about next year's trade scenario, WTO Director-General Ngozi Okonjo-Iweala emphasized the resilience of the world trading system, which continues to rely on the stability provided by a rules-based multilateral framework amidst lingering trade disputes.

The WTO, however, adjusted its 2025 trade growth outlook upwards to 2.4% due to preemptive import behaviors in the U.S. and increased trade of AI-related goods. Tariffs levied by Trump have

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