World Trade Organization (WTO) Director-General, Ngozi Okonjo-Iweala, has urged the United States and China to ease escalating trade tensions, warning that the ongoing conflict could severely damage the global economy.
Speaking at a recent forum, Okonjo-Iweala said that if both countries continue their standoff and move toward full economic separation, global output could shrink by as much as seven percent.
She explained that such decoupling would slow growth in advanced economies and inflict deeper losses on developing nations, some of which could face double-digit income declines.
The WTO chief said the divide between the world’s two largest economies is already disrupting trade flows, supply chains, and investment, with ripple effects on global growth and employment.
“When the two biggest economies are at odds, the entire trading system feels the impact,” she said. “It leads to slower trade, higher costs, and reduced cooperation when the world most needs unity to tackle shared challenges.”
Okonjo-Iweala called on nations to avoid protectionist policies and use the moment to reform and strengthen global trade rules under the WTO framework.
“The global trading system was built to prevent this kind of fragmentation,” she said. “Countries must modernize the WTO, strengthen dispute resolution, and make trade more inclusive and sustainable.”
Her comments come amid renewed disputes between Washington and Beijing over tariffs, technology, and market access.
Okonjo-Iweala concluded that cooperation, not confrontation, remains essential for sustaining a stable global economy.
