In turbulent trade times, South Asia needs reform, cooperation and resilience

South Asian economists issue joint statement

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It is unfortunate that no serious bilateral, let alone regional, dialogues on trade are taking place in South Asia, the world's fastest growing region

WE are economists from South Asia who convened online recently to discuss the impact of the new US tariffs on our countries. Based on our discussion, we wish to put out the following statement for consideration by national policy makers.

The world trading system is in turmoil. Since “liberation day” tariffs were announced in April 2025, the United States has announced country-specific tariffs that diverge from the principle of most-favoured nation (MFN) trade. Average US tariffs on imports from the world reached 17.4% in September 2025, the highest level since 1935. This abrupt change has fuelled a surge in global economic uncertainty. The World Uncertainty Index has risen from 21,424 in August 2024 to 105,558 in August 2025, a five-fold increase. This uncertainty weighs heavily on the world economy, distorts investment decisions and undermines sound economic decision-making. The overall uncertainty, although emanating from tariffs on goods, also affects trade in services.