The World Trade Organization (WTO) warned on Wednesday, April 9, 2025, that the escalating US-China tariff war could slash their goods trade by 80%, dragging the global economy down. WTO
Director-General Ngozi Okonjo-Iweala issued the alert as President Donald Trump pushed US tariffs on China to 125%, up from 104% earlier that day, after China countered with 84% duties on US imports.
WTO says US-China trade war could cut trade of goods between the 2 by 80% while shrinking world economy
Dividing the global economy into 2 blocs could lead to a long-term reduction in global GDP by almost 7% — WTO pic.twitter.com/72oHE3c0pQ
— RT (@RT_com) April 9, 2025“Our projections show a potential 80% drop in US-China merchandise trade,” Okonjo-Iweala said, calling it a “significant risk” that could “severely damage” the world’s economic outlook. She highlighted a deeper threat: a split into US- and China-led trade blocs, which could shrink global real GDP by nearly 7%. “We must tackle this through cooperation,” she urged WTO members.
Trump’s Tariff Moves Shake Markets
Trump’s latest hike came hours after raising China’s tariffs to 104%, citing a “lack of respect” for global markets in a social media post. China’s retaliation prompted the further jump to 125%. Meanwhile, he paused tariff hikes on other nations for 90 days after talks with dozens of countries, sparking a US stock market rally from a 10% slump last week.
Read: Trump to Hike Tariffs on Chinese Imports to 104% Starting Wednesday
The tariff spiral poses a threat beyond US-China relations. Okonjo-Iweala warns of a fractured world economy with enduring consequences. Cooperation, rather than conflict, maybe the only solution.
