LMSINT MEDIA reports that the Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has raised a serious red flag about the ongoing tariff standoff between the United States and China. According to her, the intensifying trade war could potentially reduce goods trade between the two nations by up to 80%, dealing a critical blow to the global economy. In a public statement released on Wednesday, Okonjo-Iweala explained that the situation poses a “significant threat to global trade stability.” This concern follows the recent decision by U.S. President Donald Trump to sharply increase tariffs on Chinese goods to a staggering 125%—a retaliatory move amid escalating tensions. “Preliminary forecasts suggest that merchandise trade between the U.S. and China could drop by as much as 80%,” said the WTO Director-General.“This could severely impact the global economic outlook, considering the combined weight of both countries in international commerce.” Together, the U.S. and China account for about 3% of global trade volume, making their cooperation vital for global economic health. Tariff Escalation and Global Fallout Earlier the same day, Trump raised tariffs on Chinese products to 104%, only to push them even higher after China responded with its own hike—boosting tariffs on American imports to 84%. The U.S. president defended the move via a social media announcement, claiming that China has consistently disrespected global trade norms. He temporarily suspended plans for broader tariff increases on other countries for 90 days, pending negotiations. WTO Chief Warns of Global Trade Fragmentation Okonjo-Iweala cautioned against the formation of two separate economic power blocs—one led by the United States, and the other by China. She noted that such a split could reduce global real GDP by nearly 7% in the long term. “The fragmentation of international trade along geopolitical lines could bring lasting damage to global cooperation,” she emphasized.“All WTO member states must work toward peaceful resolutions through dialogue and collective action.” A Call for Cooperation Over Confrontation As trade tensions deepen, the WTO urges both nations to de-escalate the conflict through mutual dialogue and diplomatic channels, rather than punitive tariffs. To learn more about how international trade affects the global economy, check out our overview of global trade systems For more insights from the WTO, visit the official WTO news updates. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.Join our Telegram Chanel.
In a decisive move to tighten trade regulations, former U.S. President Donald Trump signed an executive order effectively closing the “de minimis” loophole, which previously allowed low-value shipments from China and Hong Kong to enter the U.S. without duties. The order, which takes effect on May 2 at 12:01 a.m. Eastern Time, was announced during a White House Rose Garden event where Trump also introduced sweeping new tariffs on international trade partners. According to the White House, the change comes after Commerce Secretary Howard Lutnick confirmed the readiness of tariff collection systems to enforce duties on these shipments. The new regulations mandate that goods imported from China and Hong Kong, valued at or below $800, will now be subject to all applicable tariffs. Additionally, shipments routed through the postal network will incur a duty rate of either 30% of their value or a fixed charge of $25 per item. This rate is set to increase to $50 per item starting June 1. This executive order follows a previous attempt on February 1 to end the duty-free policy, which was temporarily paused due to logistical challenges in inspecting the influx of millions of small packages. Reports indicate that nearly 1.4 billion packages entered the U.S. through the duty-free route last year, highlighting the significant volume of such shipments. Trump had long vowed to curb China’s influence in trade, citing concerns over the synthetic opioid crisis, which has contributed to over 450,000 American fatalities in the past decade. The temporary halt on the de minimis rule enforcement earlier in February led to massive cargo accumulation at entry ports, prompting further regulatory adjustments. To comply with the new directive, carriers handling postal shipments from China and Hong Kong are now required to disclose shipping details to U.S. Customs and Border Protection (CBP), secure an international carrier bond to ensure tariff payment, and adhere to a structured payment schedule for duties. For more insights into trade regulations, visit U.S. Customs and Border Protection or refer to related updates on Reuters. For more news on U.S. trade policies, visit our Trade & Economy section. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
