Global Trade Turmoil: Tariffs Cast Shadow on Economy

The global trade system, already under pressure, is facing new challenges from rising tariffs, with developing countries most adversely affected. U.N. Secretary-General Antonio Guterres highlighted trade wars' perils at a recent U.N. conference. Tariff policies, notably by the U.S., could reshape global economic dynamics and hinder trade growth.

The United Nations Secretary-General Antonio Guterres has sounded an alarm over the global trade system's precarious health, citing significant challenges from escalating tariffs. At the U.N. Trade and Development conference in Geneva, he expressed concern about the risk of the rules-based trading system being derailed, especially for developing countries.

Under U.S. President Donald Trump's administration, tariff hikes have generated economic uncertainty. The August 7 increase affected numerous countries, leaving major trading partners like Switzerland, Brazil, and India seeking better terms, while least developed countries grapple with exorbitant tariffs reaching up to 40%.

The World Trade Organization has reacted by cutting its 2026 global trade growth forecast from 1.8% to 0.5%, emphasizing the potential long-term impact of U.S. tariffs. Former WTO leadership has cautioned that global trade terms might evolve outside the organization's framework unless swift reforms are adopted.

(With inputs from agencies.)