The ongoing tariff conflict between the United States and China is putting global trade at risk, according to the Director General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala.
The trade war began when former President Donald Trump increased tariffs on Chinese imports by 104%, prompting China to retaliate with an 84% tariff hike on US goods.
Iweala expressed concern about the broader impact this trade dispute could have on international markets.
The WTO warned that the growing tensions between the two largest economies could lead to a significant drop in their trade volume, with projections suggesting a decrease of up to 80%.
The WTO’s director-general highlighted the potential damage not only to the US and China but also to other countries, particularly less developed economies.
Iweala raised alarms about the risk of global trade splitting along political lines, which could lower worldwide economic growth by as much as 7%.
She called for a united response from all WTO members, urging cooperation to prevent further escalation.
The WTO, she said, must continue to serve as a platform for dialogue and solutions to ensure that global trade remains open and governed by rules-based systems.
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