Tariffs hit $2.64 trillion in global imports; WTO flags sharp rise in protectionism
WTO Director General Ngozi Okonjo-Iweala
| Photo Credit:
Global goods imports affected by new tariffs and other trade measures increased more than four times from mid-October 2024 to mid-October 2025 to about $2640 billion compared to the prior 12-month period, according to the WTO Director-General’s latest annual overview of developments in the international trading environment.
“Imports worldwide worth $ 2,640 billion, or 11.1 per cent of total imports, were affected primarily by tariffs along with other trade measures introduced between mid-October 2024 and mid-October 2025 – more than four times the $ 611 billion coverage recorded in the preceding period. Including similar measures on exports, the total trade affected was worth about $ 2,966 billion (more than three times the USD 888 billion recorded in the previous report),” the report shared by the WTO on Tuesday noted.
While the US was not singled out in the report, the imposition of reciprocal tariffs by the Donald Trump regime on most of its trade partners earlier this year, ranging from 10 per cent to 41 per cent, has hit imports from several countries, including India, into the American market.
India–US trade impact
On India, the US not only imposed a 25 per cent reciprocal tariff but also an additional 25 per cent penalty for buying Russian oil. As a result of the tariffs, which affected India’s shipments of over 50 per cent of items to the US, exports from India to America fell 11.9 per cent to $5.5 billion in September 2025 (year-on-year), which was the first full month of tariff imposition. In October 2025, India’s goods exports to the US declined 8.6 per cent to $6.3 billion.
US imports of several items from India, including labour-intensive ones such as textiles, gems & jewellery, shrimps and engineering goods, declined because of the new tariffs.
India’s total goods exports to the US reached a record $86.51 billion in FY25, which was 11.6 per cent higher than the previous year. India’s goods imports from the US in FY25 were approximately $45.33 billion, a 7.44 per cent increase from the previous year. In FY26, India’s exports to the US may decline if the tariffs are not addressed, exporters fear.
Protectionism escalates
“The sharp jump in the trade coverage of tariffs reflects the increased protectionism we have seen since the start of the year. Nearly a fifth (19.7 per cent) of world imports are now affected by tariffs and other such measures introduced since 2009 – compared to 12.6 per cent only a year ago,” noted WTO Director General Ngozi Okonjo-Iweala.
“At the same time, we see members acting to facilitate trade and engaging in dialogue rather than retaliation. This speaks to the value they continue to see in maintaining smooth cross-border trade flows, she said.
Call for WTO reforms
WTO members should use the current trade disruptions to advance long-overdue reforms of the WTO, the DG advised. Members have an opportunity to tackle some of the underlying concerns linked to recent unilateral measures, while repositioning the WTO to better help them seize exciting new trade opportunities.
WTO economists estimate world merchandise trade growth at 2.4 per cent in 2025 and at 0.5 per cent in 2026, with stronger-than-expected trade growth in the first half of 2025 driven by import frontloading, strong demand for AI-related products, and continuing trade growth among most WTO members, particularly developing economies.
Published on December 2, 2025
