New Delhi, April 11 -- The Director-General of the World Trade Organisation has issued a stark warning about the intensifying trade dispute between the United States and China, projecting potential severe consequences for the global economy.

According to preliminary WTO projections, bilateral merchandise trade between the world's two largest economies could plummet by as much as 80 percent if current tensions continue to escalate.

The Director-General emphasised that this conflict, involving economies that together account for approximately 3 percent of global trade, threatens to significantly undermine worldwide economic stability.

The WTO analysis indicates that negative economic repercussions would extend well beyond the two primary...