WTO warns US-China trade escalation could slash global GDP by 7%

The :contentReference[oaicite:0]{index=0} Director-General warned that an escalation of U.S.–China trade tensions, including rare-earth export curbs and retaliatory tariffs, could reduce global GDP by up to 7% over the long run. The warning comes as the WTO downgraded its 2026 trade growth forecast to 0.5%. Officials urged both countries to adopt cooperative trade policies and emphasised reforms to enhance the organisation’s ability to manage modern trade flows in services, green goods and digital commerce.