The trade measures that the U.S. and China have taken against each other could have a negative impact on the global economy, Moody's said on Friday.
The U.S. President Donald Trump said he will impose tariffs of $60 billion on Chinese imports on Thursday. In return, Beijing later announced retaliatory tariffs of $3 billion on its American imports.
Moody's said the direct impact of these trade measures on the American and Chinese economies will be limited; but warned that if they escalate, the global economy would be threatened.
"If they mark the start of an unraveling of the current rules-based architecture, the U.S. and global economy will be significantly negatively affected," the rating agency said in a statement.
The rating agency added other major economies around the world could take similar actions in their trade policies, which could further weaken the global trade relations.
"Under such a scenario ... a slowdown in trade, higher prices and weakening of business and consumer confidence would take a toll on economic growth globally," Moody's said.