Global Trade System Under Strain: Tariffs and Trade Wars

The global trade system is experiencing significant difficulties due to tariffs, with developing countries bearing the brunt. UN Secretary General Antonio Guterres highlighted these issues at a conference, discussing trade wars and rising barriers. Tariffs imposed by the US have caused disruption, affecting countries worldwide.

United Nations Secretary General Antonio Guterres warned of severe challenges facing the global trade system due to rising tariffs, particularly impacting developing nations. Speaking at a UN conference in Geneva, he expressed concerns about the threat of trade wars and the destabilization of a rules-based trading system.

President Donald Trump's tariff policies have rattled financial markets since his tenure began. His August decision to raise tariffs on imports from numerous countries, including major partners like Switzerland, Brazil, and India, has intensified global economic uncertainty.

Guterres emphasized that supply chains are disrupted, and trade barriers have surged, with some of the world's least developed countries encountering exorbitant tariffs, such as 40% on Laos, while the EU managed to negotiate a 15% duty on most of its exports to the US.

(With inputs from agencies.)