The Sino-American trade war could have drastic implications on the global economy and even split the world into two geopolitical trading blocs, according to the director general of the World Trade Organization.

WTO Director-General Ngozi Okonjo-Iweala warned that trade policy uncertainty is further weighing on projected trade growth this year.

The WTO has deemed the impact of Trump’s tariff overhaul and ongoing uncertainty a “crisis” and warned that if the situation deteriorates, trade flows could be reduced, leading