UN trade agency: Impact of tariffs on developing countries could be catastrophic

11/4/2025 17:10

Sweeping tariffs under U.S. 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 Nation's trade agency said on Friday.



Global trade could shrink by 3-7% and global gross domestic product by 0.7%, with developing countries the worst affected, the International Trade Centre said.



"It is huge," Pamela Coke-Hamilton, executive director of the International Trade Centre, told Reuters. "If this escalation between China and the U.S. continues it will result in an 80% reduction in trade between the countries, and the ripple effect of that across the board can be catastrophic."



Global markets continued to face turmoil on Friday, after Trump announced a 90-day tariff pause on dozens of countries, while ratcheting up tariffs on Chinese imports, raising them effectively to 145% when levies imposed earlier this year are taken into account.



China has been raising its tariffs on the U.S. with each Trump increase, raising fears that Beijing may jack up tariffs above the current 84%.