Reciprocal Tariffs: A Looming Threat to Global Trade

Reciprocal tariffs pose a significant threat, potentially more detrimental than foreign aid cuts to developing nations. The UN's trade agency warns that global trade may decrease by 3-7%, with a 0.7% drop in global GDP, particularly impacting developing countries.

The imposition of reciprocal tariffs and corresponding countermeasures could devastate developing countries, warns the director of the United Nation's trade agency.

In a statement to Reuters, it was highlighted that these economic measures might surpass the adverse effects of foreign aid reductions.

An alarming forecast by the International Trade Centre suggests a potential contraction of global trade by 3-7%, with global GDP possibly reducing by 0.7%, hitting developing countries the hardest.

(With inputs from agencies.)