World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala has warned that the escalating tariff war between the United States and China could reduce bilateral trade by up to 80%, with devastating consequences for the global economy.
In a statement on Wednesday, Okonjo-Iweala emphasized that the two nations together account for three percent of global trade, and the ongoing conflict threatens to severely disrupt the world’s economic outlook.
“The escalating trade tensions between the US and China present a significant risk of a sharp contraction in bilateral trade,” she said. “Our preliminary projections suggest that trade in goods between these two economies could fall by as much as 80 percent.”
She stressed the need for the global community to work collaboratively to safeguard the openness of the international trading system, adding, “WTO members have the responsibility to uphold the open, rules-based trading system. The WTO remains a vital platform for dialogue, and resolving these issues through cooperation is critical.”
