FX.co ★ WTO Appeals to U.S., China to Ease Trade Tensions

The Director-General of the World Trade Organization, Ngozi Okonjo-Iweala, has called upon the United States and China to reduce trade tensions, warning that a decoupling of the two largest global economies could potentially decrease global economic output by as much as 7% in the long term. In an interview with Reuters, she expressed significant concern over the resurgence of tensions and highlighted the WTO's active role in facilitating dialogue between both parties. She stated, "We are clearly concerned about any escalation in U.S.-China tensions," emphasizing her optimism that the two countries would refrain from initiating further tariff measures, as witnessed earlier this year. Okonjo-Iweala stressed the importance of cooperation between the U.S. and China, noting its crucial impact on both their economies and global stability. Reflecting these concerns, the WTO recently revised its 2026 global trade growth forecast downward to 0.5% from 1.8%, pointing to the delayed impacts of U.S. tariffs, while adjusting its 2025 forecast upward to 2.4%.