Tariff War May Slash US-China Trade by 80%, Says WTO Chief

WTO Chief: US-China Trade Could Plummet by 80% Due to Tariffs

​World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala has warned that the escalating trade tensions between the United States and China could lead to a significant reduction in bilateral trade, potentially decreasing by as much as 80%. She expressed concern that such a sharp contraction would not only affect the two nations but also have severe implications for the global economy, particularly impacting least-developed countries.

The WTO chief highlighted the risks of global economic fragmentation, suggesting that a division into opposing trade blocs could result in a long-term reduction of nearly 7% in global real GDP. She emphasized the urgency of addressing these challenges through cooperation and dialogue among WTO members to mitigate potential negative outcomes.

These developments come amid recent actions by U.S. President Donald Trump, who raised tariffs on Chinese imports to 125% in response to China’s retaliatory measures. China has imposed its own tariffs on U.S. goods, further escalating the trade dispute. The WTO’s projections underscore the potential global ramifications of these trade tensions.