U.S, China tariff war could slash trade by 80% – Okonjo-Iweala

The Director-General of the World Trade Organization, Ngozi Okonjo-Iweala, has warned that the United States and China’s tariff war could reduce trade in goods between the two economic giants by 80 per cent, pulling down the rest of the world economy.

Speaking on the development on Wednesday, Okonjo-Iweala said the US and China accounted for three per cent of World Trade together, warning that the conflict could severely damage the global economic outlook.

“The escalating trade tensions between the United States and China pose a significant risk of a sharp contraction in bilateral trade.

“Our preliminary projections suggest that merchandise trade between these two economies could decrease by as much as 80 percent.

“It is critical for the global community to work together to preserve the openness of the international trading system.

“WTO members have the agency to protect the open, rules-based trading system. The WTO serves as a vital platform for dialogue. Resolving these issues within a cooperative framework is essential.”