Poor countries to bear the brunt of trade wars

Poor and vulnerable countries, including the Philippines, will be the most impacted by the sweeping tariffs imposed by the Trump administration on all foreign-origin goods coming to the United Nations Conference on Trade and Development (UNCTAD).

- By DEXTER BARRO II

UNCTAD, an intergovernmental body within the UN that supports developing countries to access the benefits of global trade, condemned recent trade escalations that could potentially upend low-income economies.

US President Donald Trump announced during the so-called “Liberation Day” on April 2 a 10-percent baseline tariff on all imports to the US, along with a higher reciprocal tariff on countries with which America has a trade deficit.

This unprecedented move, framed by Trump as a measure to strengthen American manufacturing, rattled stock markets across the globe.

As major economies prepare for retaliation-with trade giant China recently announcing additional 34-percent tariffs on US goods-this could brew a devastating trade war.