WTO warns trade wars and blocs could hurt every economy

The World Trade Organization studied what could happen if countries put up more trade barriers.

A trade war happens when one country raises tariffs and others respond with their own tariffs.

This can make goods more expensive and disrupt supply chains.

The WTO says countries separating into competing trade groups could make the world economy smaller.

Poorer countries could be hurt especially badly.

The WTO also studied a future where countries cooperate more on trade.

In that case, the world could produce and sell more goods.

The report says global trade rules need to be updated while keeping countries working together.