Escalating Trade Tensions: A Risk to Global Economy

WTO chief Ngozi Okonjo-Iweala warns that escalating trade tensions between the US and China could severely impact the global economic outlook. With steep tariffs imposed by both nations, the effects extend beyond the two economies, especially affecting least developed countries. Cooperation through WTO is crucial for resolution.

The intensifying trade tensions between the United States and China, which together account for about 3 percent of global trade, pose a significant risk to the global economic landscape, according to WTO chief Ngozi Okonjo-Iweala.

She cautioned that the macroeconomic repercussions of this conflict will not be limited to the US and China but are expected to extend to other economies, with the least developed nations likely to suffer the hardest blow.

Currently, the US has imposed a steep 125 percent tariff on Chinese goods, while Beijing is retaliating with an 84 percent tariff on American exports. Okonjo-Iweala emphasized that these escalating tariffs could severely harm the global economy, while also advocating for the 166-member WTO to serve as a platform for dialogue and resolution. Trade experts note potential opportunities for Indian exporters in this situation.

(With inputs from agencies.)