US-China trade war threatens global recession, WTO warns

The head of the World Trade Organization warns that the US-China trade war risks triggering a global recession, potentially reducing global output by 7%. Ngozi Okonjo-Iweala stated that escalating tariffs could divide the world into two trading blocs, forcing nations to choose sides. The US has imposed high tariffs, and the WTO forecasts a drop in global trade if these measures persist. The WTO also noted that the poorest countries are already suffering. Okonjo-Iweala hopes the WTO can mediate a solution, as the US, a founding member, has increasingly distanced itself from international organizations.