Containers at a port in Jiangsu, China (Photo: Reuters)

Pamela Coke-Hamilton, head of international trade at UNCTAD, told a news conference that the US tariff hike and a retaliatory move by China would result in an economic downturn due to instability in commodities and financial markets, while company moves to adapt would put pressure on global growth. The US-China trade war can lead to higher unemployment and trade misorientation for third parties like the EU, Japan, and Mexico.  

The US-China trade war broke out in the middle of last year, in which both countries have consecutively taken turn to impose new tariffs on each other’s goods. In total, more than 360 billion USD worth of products in cross-border trade has seen an increase in taxes.