(Reuters) – The World Trade Organization on Wednesday estimated the U.S.- China trade tensions could cut the trade of goods between two economies by as much as 80%.
“This tit-for-tat approach between the world’s two largest economies, which together account for roughly 3% of global trade, carries wider implications that could severely damage the global economic outlook,” it said.
Dividing the global economy into two blocs in this way could lead to a long-term reduction in global real GDP by nearly 7%, the statement added.
Its preliminary estimate was issued around the time U.S. President Donald Trump further raised tariffs on imports from China but paused some others for 90 days.
(Reporting by Urvi Dugar; Editing by Alison Williams)
Comments