**London**: U.S. President Donald Trump’s import tariffs risk destabilising the economies of developing nations, warns UN trade chief Pamela Cox-Hamilton. Projections indicate significant decreases in global trade and GDP, potentially triggering a trade war with far-reaching consequences across the globe.
The imposition of extensive import tariffs by U.S. President Donald Trump is poised to significantly threaten the economic stability of numerous developing countries, according to Pamela Cox-Hamilton, head of the trade division of the United Nations. Speaking to Cursorinfo, Cox-Hamilton outlined the potential adverse effects of these tariffs, warning that they may inflict damage far exceeding that of reductions in international financial aid.
Cox-Hamilton remarked, “Increasing tariff pressure could destroy fragile economic ties that the economies of low- and middle-income countries depend on directly.” This assertion underscores the precarious position of developing nations which rely heavily on external trade relationships.
Data from the International Trade Center reveals the severity of the situation, predicting a decrease in global trade volume by 3–7%, with global gross domestic product potentially declining by 0.7%. However, the implications could escalate significantly if tensions between the U.S. and China intensify, with projections suggesting that global trade flows could plummet by up to 80%. Such a scenario could trigger substantial repercussions, affecting virtually all corners of the world.
Cox-Hamilton highlighted the risk of a trade war igniting market destabilisation, producing a cascade of negative effects ranging from currency fluctuations to social unrest in the world’s poorest nations. This chain reaction poses a critical challenge for countries already grappling with economic fragility.
The consequences of these tariff implementations have already been felt in China, where the new U.S. tariffs have led to a significant devaluation of the yuan, reaching levels not seen since the 2008 financial crisis. The overall burden on Chinese imports entering the U.S. has surged to a record 145%. In retaliation, the Chinese government has instituted its own tariffs on American goods and is seeking collaboration with the European Union to counteract Washington’s protectionist strategies.
Experts suggest that the current climate of global instability may persist for an extended period. Countries that struggle to adapt to these economic shifts could be among the most severely affected.
Additionally, previous reports from Kursor indicate that Trump’s policies may also have ramifications for American arms supplies to Europe, as the European Union begins to enhance its defence capabilities amid concerns over dwindling traditional alliances.
Source: Noah Wire Services
Subscribe to Industry Updates
