Investing.com — The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, issued a stark warning against potential trade wars on Thursday. During a debate at the World Economic Forum in Davos, Okonjo-Iweala discussed the potential fallout from retaliatory trade measures such as those threatened by U.S. President Donald Trump.

The WTO chief emphasized the severe global implications of tit-for-tat trade wars. She stated that if such a situation were to arise, with tariffs ranging from 25% to 60%, the world could return to the economic conditions of the 1930s. This scenario, she warned, could lead to double-digit losses in global GDP, which would be catastrophic for worldwide economic growth.

“Everyone will pay,” Okonjo-Iweala said, underlining the universal impact of such trade disputes. Her comments come amidst growing concerns about escalating trade tensions and their potential to disrupt global economic stability.

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