The WTO announced the risk of a reduction in global GDP by almost 7% due to the duties of the United States and China

The Director General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, did not rule out the fragmentation of world trade against the background of mutual duties between the United States and China, which, in turn, could lead to a reduction in global real GDP. This is stated in her statement published on the organization's website.

"Of particular concern is the potential fragmentation of global trade along geopolitical lines. Dividing the global economy into two blocks could lead to a long—term reduction in global real GDP by almost 7%," Okonjo-Iweala said.

She added that the negative effects of the duties will affect not only the United States and China, but will spread to other countries.

"This tit-for-tat approach between the world's two largest economies, which together account for about 3% of global trade, carries broader implications that could seriously damage global economic prospects. Our assessments, based on recent events, highlight the significant risks associated with further escalation," concluded the head of the WTO.

Trade war: The US increased duties on China to 104%

The Chinese authorities have already announced that they will take drastic measures in response to the tariffs of the American leader.

On April 2, US President Donald Trump announced large-scale trade measures: base tariffs of 10% are being introduced for all products supplied to the United States. For the EU, this figure has been raised to 20%, and for China — to 34%. Later, the United States raised duties against China to 104%.

Later, on April 9, the American leader announced that the United States would immediately raise trade duties on China to 125%. He also added that more than 75 countries have summoned US representatives for trade talks, so Trump is reducing the mutual tariff of 10% for this period.