WTO (World Trade Organization)Shìmào Zǔzhī世贸组织Director-Generalzǒng gàn shì总干事to warnjǐnggào警告tariff warguānshuìzhàn关税战escalationshēngjí升级may / possiblyhuò或to shake / to underminedòngyáo动摇multilateralduōbiān多边trademàoyì贸易system / frameworktǐxì体系foundation / rootsgēnjī根基。
April 4, 2026 at 8:00 PM
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China & WorldWTO Director-General Warns Escalating Tariff War May Undermine Foundations of Multilateral Trade System
WTO Director-General issued a statement warning that mutual tariff impositions among major economies have placed the multilateral trade system under unprecedented strain, with global goods trade volumes potentially contracting in 2026. China, the EU and other major economies have submitted formal consultation requests, though analysts note WTO has limited power to constrain US unilateral action.
The Director-General of the World Trade Organization issued a statement on April 4 regarding the sharp escalation of the global tariff war, expressing deep concern. The statement pointed out that the United States has imposed significantly higher tariffs on almost all trading partners, causing the multilateral trade rules system to face the most severe structural challenge since World War II. The statement warned that if major economies continue along the path of mutual retaliation, the 2026 global goods trade volume will face substantive contraction risk. The Director-General urged all parties to resolve trade disputes through multilateral consultation rather than unilateral action. However, analysts widely believe that under the current framework, the WTO will have difficulty imposing substantive constraints on unilateral US actions. China, the European Union, and multiple developing countries have submitted formal consultation requests to the WTO regarding whether US tariff measures violate current international trade agreements, launching legal reviews. Analysts believe that if the current deadlock continues, the global supply chain will face deep-level structural rupture, especially in semiconductors, automobiles, and agriculture. Economists warn that if the current deadlock persists, the global supply chain will face deep-level structural fracture, particularly in semiconductors, automobiles, and agriculture sectors. Technology stocks in the United States suffered the most devastating single-day selloff in recent years, with Nvidia stock leading the broader market decline.
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