United Nations experts warned this Friday that global trade could contract by up to three percent as a result of the new US tariffs, although in the long term they could “reshape and boost” “still untapped” regional trade ties.
“I think there will be changes in supply chains and a reassessment of global alliances. There will be geopolitical and economic changes as well,” predicted Pamela Coke-Hamilton, director of the International Trade Centre (ITC), who included “Mexico, China, and Thailand, but also countries in southern Africa” ​​among the most affected, “along with the US itself.”
The economist expressed particular concern about the retaliatory increase in tariffs on US products in China and the situation in Mexico, whose exports “have already shifted away from markets like the US, China, Europe, and other Latin American countries to obtain modest gains in Canada, Brazil, and, to a lesser extent, India.”
NO STABILITY NOR PREDICTABILITY
In this context, Coke-Hamilton criticized the 90-day pause in the implementation of US tariffs announced by President Donald Trump, believing that it will not benefit global trade.
“Regardless of whether there is an extension, time and again, the lack of stability and predictability will affect trade, businesses, and decisions made in real time,” she argued.
“This would not be the first time that there have been tremors in the global economic system. We have seen it over the last 50 years at different times. This one is probably a little harsher, a little more unstable,” she concluded.
These statements come after the magnate announced on Wednesday a 90-day pause in the application of tariffs imposed on April 2 for all countries that have begun negotiations to address their trade disputes and their temporary replacement with a 10 percent tariff, while increasing those for China to 125 percent.
