WTO Chief: Tariff Disruptions, Trade Tensions "Here to Stay"

The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, warned that the shifts and disruptions caused by tariffs and trade tensions in recent years will have lasting consequences and cannot be fully reversed.

Speaking on the sidelines of the World Economic Forum in Davos, Okonjo-Iweala said the global trading system is unlikely to return to its previous state, even after political leadership changes. Responding to a question on whether the confrontational trade approach adopted by former U.S. President Donald Trump toward tariffs and relations with allies had created a “permanent condition,” she said, “I don’t think we will go back to where we were.”

She emphasized that business leaders and policymakers must now plan for a world characterized by what she described as “uncertainty embedded in its structure,” reflecting a more fragmented and volatile global economic environment.

Okonjo-Iweala added that resilience should be a central priority for governments moving forward. “If I were running a country,” she said, “I would focus on strengthening my own capacities and those of my region, and on building greater resilience and shock-absorbing capabilities.”

Her remarks underscore growing concerns among global institutions that prolonged trade disputes and tariff-driven policies have reshaped supply chains, investment decisions, and international cooperation in ways that will persist well beyond any single administration.