WTO Chief Warns 42% AI Trade Surge Masks Tariff Damage
Updated
Updated · Financial Times · Sep 17
WTO Chief Warns 42% AI Trade Surge Masks Tariff Damage
1 articles · Updated · Financial Times · Sep 17
Summary
AI-linked goods trade jumped 42% in the first quarter of 2026 from a year earlier, far outpacing 7% growth in non-AI goods and, the WTO says, obscuring broader trade disruption from tariffs and other shocks.
Ngozi Okonjo-Iweala warned that if the AI boom proves a bubble, it may not sustain global trade growth, even though AI-enabling products already made up nearly 19% of world merchandise trade in the quarter.
Asia captured more than 60% of AI-enabling trade in 2025, while North America took 76% of global venture capital, underscoring how unevenly the gains are being distributed.
Nearly $800 billion in AI build-out is projected for 2026, but recent calls from tech leaders to slow AI development have raised the risk of weaker investment momentum.
The warning lands as the WTO struggles with Trump-era tariff conflict and stalled reform; the body says failure to modernize trade rules could cut global output by up to 10% by 2050.