WTO says trade between US, China could decrease by as much as 80%
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US President Donald Trump further raised tariffs on imports from China but paused some others for 90 days.
PHOTO: REUTERS
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GENEVA – The World Trade Organisation (WTO) on April 9 estimated that the US-China trade tensions could cut the trade of goods between the two economies by as much as 80 per cent.
“This tit-for-tat approach between the world’s two largest economies, which together account for roughly 3 per cent of global trade, carries wider implications that could severely damage the global economic outlook,” it said.
Dividing the global economy into two blocs in this way could lead to a long-term reduction in global real gross domestic product by nearly 7 per cent, the statement added.
Its preliminary estimate was issued around the time US President Donald Trump further raised tariffs on imports from China but paused some others for 90 days.
