Escalating Tariffs: A Looming Catastrophe for Developing Nations

Under U.S. President Donald Trump, tariffs and countermeasures could severely impact developing nations, potentially more than foreign aid cuts. The International Trade Centre predicts a significant global trade and GDP reduction. Tariff escalations between the U.S. and China could lead to catastrophic outcomes for global markets.

The trade dispute between the U.S. and China may bring disastrous consequences for developing nations, eclipsing even the effects of foreign aid cuts, according to the United Nations' trade agency.

U.S. President Donald Trump's sweeping tariffs could shrink global trade by 3-7% and decrease global GDP by 0.7%, with developing countries being the most affected, as per the International Trade Centre's analysis. Pamela Coke-Hamilton, executive director of the Centre, highlighted the turmoil caused by the recent tariff escalations.

The tensions have jolted global markets, with the U.S. imposing new tariffs on Chinese imports, while China has responded in kind. The continued tariff battles could mean a severe rollback of economic gains for developing nations, spotlighting the potential severity of international trade disputes.

(With inputs from agencies.)