The Director-General of the World Trade Organization said new tariffs announced by the U.S. along with those introduced at the start of the year could lead to a contraction of around 1% in global merchandise trade volumes in 2025.

Trade flows would fall further if the U.S. were to respond to any retaliation with further tariff increases, said Ngozi Okonjo-Iweala, the WTO’s director general.

The WTO chief highlighted a concerning decline in the share of global trade conducted under the organization’s Most-Favored-Nation (MFN) terms, which has dropped from around 80% at the beginning of the year to approximately 74% following recent trade measures.

China said it had opened a formal complaint against the new U.S. tariffs with the World Trade Organization on Friday, saying the measures violate WTO rules and requesting consultations.

China said Friday that it has filed a complaint with the World Trade Organization in response to the new U.S. tariffs. In a statement, China’s commerce ministry said that the new U.S. tariffs are “typical unilateral bullying” that violate WTO rules.

This is especially bad for US agricultural producers. They already had 10 or 15% tariffs on their produce entering China, in response to the last round of Trump tariffs. Now, if you add 34% on top of that,