The World Trade Organization chief urged America's global trading partners on Friday to listen to U.S. concerns about tariffs and engage in dialogue with Washington rather than embrace tit-for-tat measures on tariffs.
WTO Director General Ngozi Okonjo-Iweala said it's important for trade partners not to panic but to embrace dialogue in reaction to President Donald Trump’s threats in recent days to impose tariffs on close trade partners.
Trump's tariffs targeting Mexico, Canada and China launched trade wars and caused the U.S. stock market to plunge this week. They also triggered confusion because Trump delayed some of the tariffs on Canada and Mexico soon after announcing them.
Okonjo-Iweala said there was no cause for panic, preferring to describe the threats and reversals as “disruptions."
“I think we need to listen to the United States and listen to what their concerns are, and say, ‘how can we also help them deal with their concerns,’” she said, speaking during a discussion alongside former German Chancellor Angela Merkel at the WTO headquarters in Geneva.
“Thirty years ago, when this system was put in place, the U.S. bound its tariffs at a rate that was quite low, maybe around 2.5%, to benefit its population and the outside world. And it has benefited,” she said “Now the U.S. is saying this doesn’t work for me anymore.”
Okonjo-Iweala said she favors an approach of dialogue over one that is tit for tat and cautioned that there's a lot of trade that continues and which is not impacted by change in Washington.
“Let’s remember that there is 80% of world trade going on among other members of the WTO," she said. “They are trading among themselves according to the rules that exist.”
