Int'l Trade Ctr Predicts 3 Pct Drop In Global Trade Due To US Tariffs

(MENAFN- Kuwait News Agency (KUNA)) GENEVA, April 11 (KUNA) -- The International Trade Centre (ITC) predicted on Friday that global trade volume will decrease by three percent and cause a long-term shifts in trade patterns and global economic integration due to reciprocal tariffs between the US and associated escalation measures.
In press conference held in Geneva the Executive Director of ITC Pamela Coke-Hamilton warned about the wide-ranging effect of the so-called "reciprocal" tariffs and initial countermeasures could reduce global GDP by 0.7 percent by 2040.
She noted that these initial estimates developed with the French economics research institute (CEPII) were calculated before the announcement of the 90-day pause and the additional tariff hikes on China.
Coke-Hamilton further stated that the United States would be among the most affected countries along with Mexico China and several nations in Southern Africa.
She reported that many countries are already witnessing a shift in their exports toward alternative markets particularly in the Middle East and North Africa in addition to the European Union South Korea and Brazil.
She emphasized that these developments signal a potential reshaping of the global trade map urging developing countries to act proactively by diversifying their economies.
Coke-Hamilton stressed that a key part of the solution for developing countries to navigate any kind of global shocks lies in prioritizing diversification value addition and regional integration.
"If ever there was a time to make this pivot what I call "strategic reglobalization" this is it. It's characterized by mutually beneficial trade rather than traditional development aid," she added. (end)
amg

MENAFN11042025000071011013ID1109419867