The WTO cuts its estimates for world trade: in 2025, trade will fall between 0.2% and 15% following US tariffs. Warning about the uncertainty weighing on trade, the WTO explains that trade is currently set to fall by 0.2% this year, but the decline - due to "serious downside risks" - could reach up to 1.5%.
Meanwhile, the tariffs imposed by the American president are being discussed and are also being opposed within the United States. In fact, California intends to file a lawsuit to stop the duties and the protectionist policy of the Washington leader. The legal action will be filed in the next few hours and represents the first significant challenge to the administration's trade policy.
“Trump’s illegal tariffs are creating chaos for families, businesses and the economy, raising prices and threatening jobs,” Democratic Governor Gavin Newsom said in announcing the legal action against the US president.
California, which had nearly $675 billion in two-way trade last year, according to the governor's office, stands to lose billions in state revenue from Trump's tariff policies if international trade declines and the stock market plummets. Mexico, Canada and China are the state's three largest trading partners.
“The President’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s also illegal,” State’s Attorney Rob Bonta said in a statement. “Californians are bracing for the consequences of the President’s actions — from farmers in the Central Valley to small businesses in Sacramento to worried families at the dinner table — this game the President is playing has very real consequences for Californians across our state.”
(Unioneonline/lf)
