The World Trade Organization (WTO) has updated its global trade forecast, projecting a modest growth of 0.9% in global goods trade for 2025 and 1.8% for 2026. This outlook reflects a cautious optimism despite ongoing uncertainties caused by President Donald Trump's tariff policies on U.S. imports. The WTO Director-General, Ngozi Okonjo-Iweala, noted that broader tit-for-tat retaliations have been avoided so far, but warned that the full impact of the tariffs is still unfolding. The average U.S. tariff rate has risen to 20.1%, the highest since the 1910s, according to WTO and IMF data. While the WTO has slightly lifted its trade growth estimates for 2025, activity remains clouded by the tariff measures. Industry leaders and manufacturers have expressed concerns that the volatility and unpredictability of Trump's tariff actions are creating uncertainty and complicating long-term investment decisions. Critics highlight that the tariffs are being imposed unilaterally and haphazardly, potentially causing damage to American industries. Despite these challenges, major exporting countries have not yet experienced a significant disruption in trade flows, and some analysts attribute the relatively resilient trade performance to frontloading and measured responses ahead of tariff implementations. However, risks remain elevated for 2026 as the full effects of the tariff regime continue to develop.