WTO raises the alarm: Escalation Trade Battle vs and China threats world economy and cryptomarkt

The World Trade Organization (WTO) is the alarm bell. The rising trade tensions between the United States and China are in danger of distributing a big blow to world trade this year.

According to WTO director Ngozi Okonjo-Iweala, the organization warns in a new prognosis for a sharp relapse of global trade, with possible far-reaching consequences for stock markets and the crypto sector.

Trade between US and China may collapse

The WTO is mainly concerned about the far -reaching decoupling of American and Chinese economies. The expectation is that bilateral trade will fall by no less than 81% this year. If smartphones and other technological products are also included, the contraction can even amount to 91%.

This is worrying for the world economy, since tech products often depend on global supply chains that represent millions of jobs. Less demand simply means less production and therefore economic delay.

WTO expects shrink of world trade to 1.5%

In an attempt to temper the tensions, President Trump has established a 90 -day break for mutual import duties. This temporary measure, intended as a breathing break for the global economy, offers only limited relief. If the rates are reintroduced, the WTO provides a decrease in world trade by 0.8%. In a more favorable scenario with increasing uncertainty and volatility, the contraction can even rise to 1.5%, with global economic growth weakening to a meager 1.7%.

Crypto and fairs under pressure

The impact of the escalating trade war can also be felt on the financial markets. Large stock markets react nervously, while the cryptomarkt is hit hard. Since Trump took office and flare up the trade conflict, Bitcoin (BTC) has fallen by almost 23% compared to his all -time high of $ 108,800 in January. According to the WTO, the prospects for BTC and Altcoins will be gloomy in the coming months, especially if the trade conflict will escalate further.

Unpredictability is the greatest enemy

At present, a general import tax of 10%applies in the United States. For China, these rates are on average at 145%, with extra surcharges for sectors such as cars and steel. This imbalance puts heavy pressure on the trade relationship. But according to the WTO, it is not so much the price tag that the world economy undermines – it is mainly the unpredictability of the policy.

Because of this uncertainty, companies express investments, consumers limit their expenses and markets remain tense. China has since asked the WTO to start a formal investigation into American rates. The organization is considering an emergency consultation in the short term.