KEY POINTS
- According to WTO leader Okonjo-Iweala the trade dispute between the US and China could cut their two-way commercial activities by 80 percent.
- Global trade fragmentation because of this conflict would eliminate almost 7 percent of worldwide GDP values.
- During the trade dispute Trump created a new phase by increasing Chinese import tariffs to 125 percent.
WTO leader Ngozi Okonjo-Iweala issued a warning to the world that American and Chinese tariffs continued ascent could lower their business exchange to an 80 percent decline which would damage global economic growth.
Okonjo-Iweala issued this projection during a time when Donald Trump implemented 125 percent tariffs on Chinese imports thereby worsening the trade dispute.
The escalating US-China tariff dispute creates substantial negative effects on worldwide commerce mechanisms along with economic performance, WTO chief warns.
WTO chief warns about impact
Okonjo-Iweala cautioned that rising trade tensions between the US and China create a major threat to worldwide commerce because the consequences would result in severe harm to global economic projections.
She identified the potential two-block economic division between US and Chinese leadership as a direct cause for a substantial seven percent decrease in worldwide economic productivity over an extended period.
US response and global implications
Following Chinese tariffs on US imports at 84 percent China got retaliation from America when it increased tariffs on Chinese goods to 104 percent. During this 90-day negotiation period Trump temporarily lifted stringent tariffs for the countries which requested it.
