The World Trade Organization sharply cut its forecast for global merchandise trade from solid growth to a decline on Wednesday, saying further U.S. tariffs and spillover effects could lead to the heaviest slump since the height of the COVID pandemic.

The World Trade Organization slashed its forecast for merchandise trade this year as soaring US tariffs and broader uncertainty hammer international commerce.

The WTO has deemed the impact of Trump’s tariff overhaul and ongoing uncertainty a “crisis” and warned that if the situation deteriorates, trade flows could be reduced, leading