In a pivotal gathering in Geneva, the UN Trade and Development conference saw the convergence of its 195 member states on Monday. The spotlight was on the rigorous implementation of World Trade Organization (WTO) rules amidst escalating US tariffs that are currently straining international relations and economic stability in developing countries.

Rebeca Grynspan, Secretary-General of the United Nations Trade and Development, addressed the critical impact of these tariffs, describing them as a catalyst for a dual crisis of debt and development. "Countries are cornered into making harsh choices between defaulting on their debt or forsaking their developmental goals… Uncertainty acts as the highest tariff, deterring investments, decelerating growth, and complicating the route of trade as a means to development," Grynspan remarked.

Despite these challenges, Grynspan highlighted that "72 percent of global trade is still governed under WTO regulations," which are designed to maintain a fair and systematic international trading framework across 164 nations. This framework covers various aspects including goods, services, intellectual property, and investments. Under the WTO’s rules, particularly Article III, there is a clear prohibition against discriminating 'local suppliers' of goods and services based on foreign ownership, a principle currently undermined by US tariffs.

The economic turbulence is further exacerbated by the mounting debt burden in developing countries, which soared to $31 billion in 2024, as noted by Annalena Baerbock, President of the General Assembly. She stressed that the perception of global trade benefiting only a select few erodes trust in the multinational system, pointing out that "half of humanity has seen no rise in income for a generation."

Adding to the discourse, Ngozi Okonjo-Iweala, Director-General of the WTO, advocated for urgent reforms in post-war institutions like the UN and WTO to better align with today's digital and environmentally-focused global landscape. "Preserve what works, reform what no longer serves, and reposition for a digital and green future," she urged.

The tariff issue gained further complexity within the first months of US President Donald Trump’s second term as he imposed new tariffs on various nations and international groups including China, the European Union, and Canada, among others. This move has led to a significant legal scrutiny with the US Supreme Court poised to assess the legality of these tariffs in the upcoming November session.

As global leaders continue to debate and navigate through these challenging economic waters, the outcomes of these discussions and legal reviews are eagerly awaited by the international community, hoping for resolutions that foster global economic stability and equitable growth.