UN body warns of ‘catastrophic’ impact of US-China trade war on developing countries

The 'tit-for-tat' tariffs between the United States and China might have a disastrous effect on developing nations, according to the executive director of the International Trade Center. The head of the United Nations and World Trade Organizations' joint agency, Pamela Coke Hamilton, said that the protracted trade war and rising tariffs could make the cuts to international aid even worse.

It's enormous. She stated that if the current escalation between the U.S. and China persists, trade between the two nations will be reduced by 80%, which could have disastrous repercussions. Coke-Hamilton cautioned that "tariffs could have a much more harmful impact than the removal of foreign aid," since the protracted trade war may cause economic losses that are disproportionately felt by developing countries.

The International commerce Center also predicted that world GDP might decline by 0.7% and global commerce could decline by 3–7%, with developing nations suffering the most.