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WTO Warns: Protectionism Quadruples Trade Impact to $2.6 Trillion
2 Dec
Summary
- Global imports affected by tariffs surged over fourfold to $2.64 trillion.
- Nearly 20% of world imports now face new tariffs, up from 12.6% a year ago.
- India's exports to the US fell significantly due to reciprocal and penalty tariffs.
Global trade is facing unprecedented challenges as tariffs and trade-restrictive measures have surged dramatically. Imports affected by these measures have increased more than fourfold, reaching about $2.64 trillion in the 12 months leading up to October 2025. This represents a significant rise in protectionism, with nearly 20% of global imports now subject to new tariffs, compared to 12.6% a year prior.
The impact is being felt across nations, with India experiencing a notable downturn in its exports to the United States. Following the imposition of reciprocal tariffs, including additional penalties on certain goods, India's shipments to the US saw an 11.9% decrease in September 2025. This trend has caused concern among Indian exporters regarding future trade volumes.
In light of these escalating trade tensions, the Director-General of the World Trade Organization has called for urgent reforms within the organization. While acknowledging that members are also engaging in trade facilitation, the current disruptions highlight the need to address underlying concerns and reposition the WTO to better navigate future trade opportunities and challenges.
