Trump’s tariffs, new trade barriers unsettle world leaders, agencies

• U.S President warns of more tariffs, forges ahead with agenda
• WEF: Trade barriers serve no one’s interest
• Okonjo-Iweala: Trade wars sparked by new tariffs will be catastrophic
• Nigeria’s dedication strategic to tackling challenges, says Shettima 

Amid unprecedented global uncertainty and rising protectionism, the ongoing World Economic Forum (WEF) yearly meeting has emphasised the urgent need for an open, inclusive global economy and strengthened international cooperation to address economic challenges and ensure a sustainable recovery.

The global economy is poised for another year of uncertainty and uneven growth, according to the WEF’s latest Chief Economists Outlook, which was launched ahead of the annual meeting that is themed: “Collaboration for the Intelligent Age” this year.

The outlook estimated 56 per cent of surveyed chief economists expected the global economy to weaken in 2025, compared to only 17 per cent anticipating improvement. In addition, key discussions at the annual meeting were dominated by phrases such as “extremely high uncertainty” and “at a crossroads”.

Furthermore, the escalation of geopolitical conflicts and regional instability has brought the level of global cooperation to a low point, according to the Global Cooperation Barometer 2025 report released by the WEF.

The United Nations Secretary-General, Antonio Guterres, issued a stark warning about mounting global crises, including the climate crisis and geopolitical divisions.

Calling the challenges a “Pandora’s box of troubles”, Guterres urged the international community to prioritise collaboration. “As a global community, we must live up to these responsibilities,” he said, echoing the WEF’s call for unity.

Speaking on protectionism that has emerged as a focal point of concern at the meeting, the WEF’s Chief Economists Outlook report warned that rising trade barriers and geopolitical conflicts could cause lasting disruptions to trade patterns with over half of surveyed economists foreseeing a grim future driven by trade barriers, soaring public debt, and uneven recovery.

Already, the United States President, Donald Trump, has threatened tariffs worth trillions of dollars for countries that refuse to make their products in America. Delivering his first international speech of his second term via livestream before the WEF  in Davos, Switzerland, Trump took a combative approach to international diplomacy, as he once again threatened tariffs against foreign competitors — and even allies like the European Union (EU) and Canada.

“My message to  every business in the world is very simple: Come make your product in America, and we will give you among the lowest taxes of any nation on earth. But if you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff. Differing amounts, but a tariff,” Trump said.

Trump also said Canada could become a state of America to get rid of the United States trade deficit with Canada, adding that they do not need Canada’s cars or lumber.

He noted plans for a major intervention in the oil market, asking Saudi Arabia and OPEC to “bring down the cost of oil”. He also urged Saudi Arabia to increase its investments in the United States to $1 trillion (£810m).

Concerning America’s relations with China, Trump says he wants fairness, citing the trade deficit between the two countries, as well as with other Asian countries.

However, the World Trade Organisation (WTO) chief said on Thursday that any tit-for-tat trade wars prompted by Trump’s tariff threats would have catastrophic consequences for global growth, urging states to refrain from retaliation.

WTO Director-General, Ngozi Okonjo-Iweala, a former Nigerian finance minister, starts her second term as head of the global trade watchdog this year at a time when Trump’s tariff threats have raised the spectre of trade wars.

“If we have tit-for-tat retaliation, whether it’s 25 per cent tariff or 60 per cent and we go to where we were in the 1930s we’re going to see double-digit global GDP losses. That’s catastrophic. Everyone will pay,” Okonjo-Iweala said at the WEF annual meeting in the Swiss resort of Davos.

She was drawing a parallel with the period between the two World Wars when countries adopted trade restrictions in response to a U.S. tariff act in 1930.

“We’ve seen this movie, as I said, elsewhere in the 1930s with the Smoot-Hawley Act. It made it worse,” she said.

“We’re very much saying to our members at the WTO, you have other avenues, even if a tariff is levied, please keep calm,” she added, asking states to study their options and use the WTO’s system for resolving disputes.

Okonjo-Iweala said she was “encouraged” by Trump’s decision to hold off on immediately imposing tariffs on imports from countries like Canada and Mexico, opting instead to mandate investigations into trade practices.

At the same WEF event, Brazil’s envoy urged Washington to refrain from adopting tariffs in the first place.

“Using tariffs politically, I think there’s negative spillover, which really hurts the international rules-based system,” Alexandre Parola said. “I think that’s a bad message.”

MEANWHILE, Vice President, Kashim Shettima, on Thursday, declared that Nigeria’s dedication to harnessing the potential of its youth, investing in education, and advancing smart agriculture are necessary strategies that will go a long to tackle global and domestic challenges.

Speaking at the Financial Times Global Risk Roundtable at the ongoing 2025 WEF in Davos, Shettima observed however that while crises abound, they also present opportunities for nations to rebuild stronger.

He said: “The word for crisis in Chinese is Wei Ji. Wei stands for danger, while Ji stands for opportunity. Yes, we have challenges, but those challenges are pregnant with opportunities to re-engineer our society and build back better.”

The Vice President reaffirmed Nigeria’s resolve to embrace innovation and empowerment, particularly through education, gender-focused initiatives, and smart agriculture to propel its economy into the fourth post-industrial revolution.

“The crisis has given us a unique opportunity to invest in people, especially in areas that will enable us to leapfrog our economies into global competitiveness,” he said.

Shettima also expressed disbelief in dependency on foreign aid, advocating instead for equal partnerships that uphold dignity.

“I don’t believe in aid; I believe in partnership. I’d rather carry my poverty with dignity and deal with people, nations, and companies on a pedestal of equality, not in a master-servant relationship. I didn’t come with a begging bowl,” he said.

The Vice President expressed optimism about Africa’s prospects, noting the continent’s rich resources and strategic importance to global growth, saying, “My continent is the richest in the world, and the trajectory of global growth is facing Africa. Nigeria will make or mar that transition. The youths of Africa are the drivers of change.”

Acknowledging global crises, including conflicts in Ukraine, the Middle East, and Sudan, the Vice President noted their impact on supply chains, humanitarian challenges, and peace. He called for multilateral collaboration, stressing that the interconnected nature of global challenges requires collective solutions.

“There is an incestuous relationship between economy and ecology in the African continent. But hope springs eternal in the hearts of men. As members of the same human family, we can find solutions to our challenges. We must look inward to solve our problems, but multilateralism is key. These challenges are global, and we must fuse into one human family to overcome them,” the Vice President added.