Tariff Cover Hits One‑Fifth of Imports: WTO | 04 Dec 2025

Source: ET 

World Trade Organisation  reported that imports worth USD 2,640 billion (11.1% of global imports) were affected by tariffs and other trade-restrictive measures between mid-October 2024 and mid-2025. 

• Factors Driving the Surge in Tariffs: 
  • Rising Protectionism: Sharp increase in tariff coverage reflects protectionist measures by major economies. 
  • Trade Tensions & Unilateral Actions: Some countries imposed tariffs up to 50%, affecting global trade. 
  • Supply-Chain Disruptions: With supply‑chain disruptions and security‑related import restrictions (e.g., on strategic materials), many countries, particularly major economies, have raised tariff barriers, leading to a broad impact across sectors. 
• Impact on India: 
  • Exports: Higher tariffs make Indian goods costlier, affecting sectors like textiles, engineering, chemicals. 
  • Trade Balance: Slower export growth may widen trade deficit. 
  • Supply Chains: Tariffs on raw materials and technology increase production costs, impacting electronics, pharma, and machinery. 
• Tariffs: A tariff is a tax imposed by one country on the goods and services imported from another country to influence it, raise revenues, or protect competitive advantages.

World Trade Organization (WTO) 

• WTO is an international institution formed to regulate the rules for global trade among nations.   
• It was formed under the Marrakesh Agreement signed on 15th April 1994 by 123 countries after the Uruguay Round negotiations (1986-94) of the General Agreement on Tariffs and Trade (GATT), leading to the birth of WTO in 1995.  
  • WTO succeeded the GATT which had regulated world trade since 1948. 
  • Promotes free and fair trade, reduces tariff & non-tariff barriers, settles disputes. 
  • Has 166 members, covering 98% of global trade. 
  • Headquarters: Geneva, Switzerland.