WTO chief warns that the US Tariff War could reduce trade by 80% | Mint

The head of the World Trade Organization said on Wednesday that the US tariff war could reduce trade in goods between the two economic giants by 80 percent, which decreases the rest of the global economy. President Donald Trump raised rates on China on Wednesday to 125 percent, as the world’s two largest economies of retaliation charge. “The increasing trading tension between the United States and China poses a significant risk to a sharp contraction in bilateral trade. Our provisional forecasts indicate that merchandise between these two economies can fall by as much as 80 percent,” WTO Director General Ngozi Okonjo-Iweala said in a statement. She warned that the conflict “could severely damage the global economic outlook. Even when he slapped further rates on China, Trump interrupted 90 days higher rates on the rest of the world after dozens of negotiations reached out. Potential fragmentation of global trade according to geopolitical lines. A division of the global economy in two blocks could lead to a long -term reduction in the global real GDP by almost seven percent, “she said. She urged all WTO members” to address this challenge by collaboration and dialogue “Hours earlier Trump increased the duties on Chinese goods, only to rise by rates to 84 percent. announced in a post on social media announcing the moves, and China was singled out for special treatment due to “the lack of respect China showed to the global markets”.