By: Chioma Madonna Ndukwu
Ngozi Okonjo-Iweala, head of the World Trade Organization (WTO), has warned that the ongoing trade battle between the United States and China could lead to a massive drop—up to 80%—in the exchange of goods between both nations.
She gave the warning on Wednesday, stressing that the dispute could harm not just the two countries involved but also the global economy.
This warning followed U.S. President Donald Trump’s latest move to raise tariffs on Chinese goods to 125%, claiming it was a response to China’s own trade actions. China fired back by increasing its tariffs on American products to 84%.
Okonjo-Iweala called the situation dangerous, saying, “The growing tension between the U.S. and China could seriously hurt international trade.”
She explained that although the U.S. and China together only account for around 3% of global trade, the effects of their conflict could reach much further.
One of her main concerns is that the world might split into two trading groups—one around the U.S., the other around China.
“This kind of global divide could lower worldwide GDP by nearly 7% in the long run,” she warned.
In response to global concerns, Trump also announced a 90-day pause on new tariffs for other countries, after several reached out for talks.
In a post on social media, Trump said China was being targeted for “not respecting global markets,” and argued that stronger tariffs were needed to protect U.S. interests.
Okonjo-Iweala called on WTO member nations to come together, urging open discussions and cooperation to stop the trade system from falling into deeper trouble
About The Author
Leave a comment