Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, has warned that the ongoing tariff war between the United States and China could reduce bilateral trade by up to 80%, which would also negatively impact the global economy.
Speaking on Wednesday, Okonjo-Iweala highlighted that the US and China together account for 30% of world trade. She stressed that the rising trade tensions between the two nations could lead to a severe contraction in trade, severely affecting the global economic outlook.
“Our preliminary projections suggest that merchandise trade between these two countries could drop by up to 80%,” she said. “It’s crucial for the global community to collaborate in maintaining an open international trading system.”
Okonjo-Iweala emphasized that the WTO remains an important platform for dialogue and resolving such conflicts through cooperation, urging its members to protect the rules-based trading system.
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