US tariffs impact on developing countries could be worse than foreign aid cuts: UN
Tariffs on imports to the US mean developing economies risk sliding back on gains made in recent years, says the United Nations’ trade agency
Sweeping tariffs on imports imposed by US President Donald Trump and countermeasures could have a “catastrophic” impact on developing countries, hitting even harder than foreign aid cuts, the director of the United Nations trade agency said on Friday.
Global trade could shrink by three-seven per cent and global gross domestic product by 0.7 per cent, with developing countries the worst affected, the International Trade Centre said.
“It is huge,” said Pamela Coke-Hamilton, executive director of the International Trade Centre (ITC). “If this escalation between China and the US continues it will result in an 80 per cent reduction in trade between the countries, and the ripple effect of that across the board can be catastrophic.”
Global markets remained in turmoil on Friday. Trump this week announced a 90-day tariff pause on dozens of countries but hiked the duties on Chinese goods to an effective rate of 145 per cent.
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Trump raises China tariffs to 125%, pauses US levies on most other nations for 90 days
On Friday, Beijing increased its tariffs on US imports to 125 per cent in a trade war that threatens to upend global supply chains.