Nigeria TV Info — WTO DG Okonjo-Iweala Warns U.S.-China Trade Tensions Could Cost Global Economy 7% GDP

Abuja, Nigeria — The Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, has called on the United States and China to de-escalate rising trade tensions, warning that a decoupling between the world’s two largest economies could slash global economic output by up to 7 per cent in the long term.

In an interview with Reuters over the weekend, Okonjo-Iweala expressed concern over the recent spike in U.S.-China trade frictions. She revealed that WTO officials have engaged with both countries to encourage dialogue and prevent further escalation.

“We’re obviously worried at any escalation in the U.S.-China tensions,” she said. “Any U.S.-China tensions and decoupling would have implications not just for the two biggest economies in the world, but also for the rest of the world.”

Okonjo-Iweala stressed that both nations understand the importance of maintaining good relations, given the global economic consequences. She warned that a split into two trading blocs could result in “significant global GDP losses in the longer term – up to 7 per cent global GDP losses and double-digit welfare losses for developing countries.”

The WTO recently revised its 2026 forecast for global merchandise trade growth, lowering it to 0.5 per cent from the earlier 1.8 per cent projection due to the delayed effects of U.S. tariffs. For 2025, the WTO raised its forecast for global goods trade growth to 2.4 per cent.

Dr. Okonjo-Iweala urged both nations to prioritize dialogue to safeguard global economic stability, noting that cooperation between the U.S. and China remains crucial for worldwide trade and development.