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.

Uncertainty over tariffs prompted the World Trade Organization to revise down its outlook for global goods trade, forecasting a contraction this year and possibly a deeper one if conditions deteriorate further,