Escalating trade tensions between US, China could severely damage global eco outlook: WTO

New Delhi | The escalating trade tensions between the US and China, whose bilateral trade accounts for about 3 per cent of global trade, could severely damage the global economic outlook, WTO chief Ngozi Okonjo-Iweala has said.

The negative macroeconomic effects will not be confined to the United States and China but will extend to other economies, especially the least developed nations, the Director General of the Geneva-based World Trade Organisation (WTO) said.

While the US has announced imposition of a steep 125 per cent tariffs on China, Beijing is imposing 84 per cent on Washington.

"This tit-for-tat approach between the world's two largest economies — whose bilateral trade accounts for roughly 3 per cent of global trade — carries wider implications that could severely damage the global economic outlook. Our assessments, informed by the latest developments, highlight the substantial risks associated with further escalation," she said.

She suggested that the 166-member organisation serves as a vital platform for dialogue and resolving these issues within a cooperative framework is essential.

According to trade experts, the increasing trade tensions can provide opportunities for Indian exporters in both the countries.