WTO: Freight transactions between US – China can be reduced by 80%

The World Trade Organization (WTO) estimates that the US -China trade war may lead to a reduction of up to 80% of freight transactions between the two countries.

This tactic “eye -to -eye” between the two largest economic planet, which accounts for about 3% of world trade, has wider consequences that could seriously affect the economic perspectives worldwide, “the WTO underlined.

The separation of the global economy into two blocks, in this way, could lead to a long -term reduction in world real GDP by almost 7%, the statement said.

The WTO’s assessment was released as US President Donald Trump announced the imposition of even higher duties on China, but suspending duties on imports from the rest of the world for 90 days.