WTO Director General Ngozi Okonjo-Iweala has raised concerns over the ongoing tariff war between the United States and China, warning that it could severely affect global trade. The conflict began when President Donald Trump imposed a 104% tariff on Chinese goods, leading China to retaliate with an 84% tariff on US products.
Iweala cautioned that the trade dispute could shrink bilateral trade between the two countries by up to 80%, with wider repercussions for the global economy. She highlighted the risk of global economic fragmentation and its potential to reduce global GDP by nearly 7%, especially impacting the world’s least developed economies. She urged WTO members to work together to protect international trade and resolve these tensions cooperatively.
