UN Says Trade War Is 'lose-lose' For China, US

The ongoing trade war between the United States and China is harming both economies, the UN said on Tuesday, with a sharp drop in exports and higher prices for consumers.

In a fresh report, the UN Conference on Trade and Development (UNCTAD) examined the repercussions of bruising tariff hikes imposed by the world's two largest economies, and found that both were left considerably worse off.

That in turn risks taking a toll on the entire global economy, the agency cautioned.

"A lose-lose trade war is not only harming the main contenders, it also compromises the stability of the global economy and future growth," head of UNCTAD's international trade and commodities division Pamela Coke Hamilton said in a statement.

The US-China trade war has since last year seen tit-for-tat tariffs imposed on hundreds of billions of dollars worth of goods.

The UNCTAD analysis, which only looked at the impact of the US tariffs, found they had caused a 25-per cent decline in US imports of sanctioned Chinese products in the first half of 2019 alone.

"The United States tariffs on China are economically hurting both countries," the report concluded. (AFP)