Ngozi Okonjo-Iweala Flags Potential Fallout: US-Russia Trade War’s Impact on Global Economy

US-Russia Trade Tensions: Ngozi Okonjo-Iweala Cautions Trump on Global Repercussions

Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization (WTO), has warned that a trade war between the U.S. and Russia would have far-reaching consequences for the global economy. Her statement comes amid growing tensions between the two countries over economic sanctions, tariffs, and trade restrictions.

Okonjo-Iweala urged then-President Donald Trump to reconsider his stance on escalating the trade dispute, emphasizing that trade wars typically lead to negative outcomes, such as higher costs for consumers, disruptions in global supply chains, and potentially slower global growth. She noted that both the U.S. and Russia, as major global players, have significant influence over the international trade system, and a conflict between them could destabilize markets and hurt developing economies the hardest.

The warning follows Trump’s imposition of tariffs on Russian goods and further economic measures targeting Russia’s key industries, especially in response to geopolitical issues, including Russia’s actions in Ukraine. Okonjo-Iweala stressed that the WTO’s role in mediating such disputes is crucial to maintaining the stability of global trade systems.

While Trump’s administration was focused on “America First” policies, Okonjo-Iweala’s call was a reminder of the interconnected nature of modern economies and the potential risks of unilateral trade actions.