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.

Both the United States and China are expected to take economic hits this year due to the Trump administration’s tariffs.

The U.S. economy will experience sluggish growth in 2025 due to an escalating trade war and "high levels of policy uncertainty," the International Monetary Fund said in a report Tuesday. The projections reinforce economists' warnings about the negative repercussions of President Trump's tariffs on the economy.