The World Trade Organization (WTO) launched today (09.04.2025) a strong warning on the serious consequences that the growing escalation of trade tensions between major powers, particularly between the United States and China, could bring. The organization warned that this conflict would not only affect both economies, but would also have a significant negative impact on the global economy as a whole.
In a statement released by the WTO Director-General, it was noted that the agency's preliminary projections indicate thatBilateral trade in goods between the two powers could fall by up to 80%. if tariff retaliation and mutual restrictions continue.
"The escalating trade tensions between the United States and China pose a significant risk of a sharp contraction in bilateral trade.", said the head of the multilateral organization.
The Director General stressed that The United States and China together represent about 30% of world trade., and warned that the prolongation of the conflict would have “broader implications that could seriously harm the global economic outlook".
The statement emphasizes that the effects will not be limited to the United States and China, but will particularly hit least developed countries, which depend on access to open and stable markets.
Faced with this scenario, the WTO urged its members to act responsibly and urgently:
"Trade diversion is an immediate threat that requires a coordinated global response. It is critical that the international community work together to preserve the openness of the international trading system.", warned the Director General.
The organization reiterated that The WTO remains an essential platform for dialogue and the peaceful settlement of disputes, and called for strengthening multilateral cooperation. to prevent this escalation from turning into a crisis.
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