The Director General of the World Trade Organisation (WTO), Ngozi Okonjo-Iweala, has said there are growing concerns that the ongoing trade agitations between the U.S and China could escalate, calling for a cool-off between the two world’s largest economies.
In an interview reported at the weekend by Reuters, she warned that global economic output could be reduced by seven per cent over the longer term if scuffles continued.
Her concerns come after the WTO last week sharply lowered its 2026 forecast for global merchandise trade volume growth to 0.5 per cent from its previous estimate of 1.8 per cent growth in August, citing expected delayed impacts from U.S. President Donald Trump’s tariffs.
It raised its forecast for global goods trade growth to 2.4 per cent for 2025, Reuters said.
The forecasts were issued before the relative calm of recent months was shattered last week when China imposed new export controls on rare earth metals needed for the technology sector, and Trump responded by imposing new 100 per cent duties on Chinese imports starting next month.