Initial projections indicate that commercial tensions may result in a significant drop in business transactions, which would have wide repercussions
It has warned that the growing trade war between the United States and China can lead to a reduction of up to 80% in the exchange of goods between these two nations. WTO director Ngozi Okonjo-Iweala has emphasized that the adverse effects of this dispute will not be limited to these powers, but will also affect smaller and developing economies. Okonjo-Iweala expressed his concern about the possibility of a fragmentation of global trade, emphasizing the urgency of an international coordinated response. Initial projections indicate that commercial tensions can result in a significant drop in business transactions, which would have broad repercussions.
In addition, the WTO director pointed out that a division of the world economy could impact global gross domestic product (GDP), reducing it by about 7%. This analysis comes at a time when former US President Donald Trump has announced a 90-day suspension in customs tariffs except for products from China. The current situation highlights the complexity of trade relations between the two largest economies in the world and the need for constructive dialogue to avoid severe economic consequences. The WTO continues to monitor the situation, seeking solutions that can mitigate damage to global trade.
Posted by Sarah Paula
*Report produced with the aid of AI
