The World Trade Organization (WTO) has expressed fears that the increasing trade tension between America and China could cause serious damage to the global economic scenario. WTO Director-General Ngozi Okonjo-Iweala said the negative economic impact of this global trade uncertainty will not be limited to the US and China but will also impact other economies, especially the least developed countries.
The share of trade between the US and China in world trade is about three percent. This shows that any kind of tension in the trade relations between the two countries can cause major losses to global trade.
In the last few days, the world’s two top economies have been continuously imposing tariffs on each other, due to which the trade war is deepening. While the US has announced a 125 percent tariff on China, China has said that it will impose an 84 percent tariff on it.