The World Trade Organization (WTO) analyzed that trade in goods between the United States and China could decrease by up to 80% due to their trade conflict.
On the 9th (local time), the WTO stated in a report, "The retaliatory tit-for-tat measures between the two major economic powers, which account for about 3% of global trade, have broad implications that could seriously damage the global economic outlook."
The WTO projected that if the global economy splits into two blocs, the world's real gross domestic product (GDP) could decline by about 7% in the long term. It pointed out that if the United States and China continue a 'tariff war' through a series of retaliatory measures, it could negatively impact global supply chains and the world's real GDP.
The WTO said, "Global cooperation is necessary. We urge all WTO member countries to respond to this issue through cooperation and dialogue," adding, "The world community must unite to maintain the openness of the international trade system."
The WTO's report was released at a time when U.S. President Donald Trump had further increased tariffs on Chinese imports but had suspended reciprocal tariffs from other countries for 90 days.
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