## Summary of "Trump’s Tariffs Threaten Global Economic Stability" **News Title:** Trump’s Tariffs Threaten Global Economic Stability **Report Provider:** ShareCafe **Author:** Sharecafe Team **Published Date:** July 16, 2025 --- ### Key Findings and Concerns: A senior United Nations trade official, Rebeca Grynspan, Secretary General of UNCTAD (the United Nations Conference on Trade and Development), is issuing a stark warning about the potential consequences of President Trump's tariff policies. She asserts that the enactment of "steepest trade taxes" could initiate a **"cascade" effect across the already slowing global economy**, leading to significant job losses and widespread instability. ### Critical Information and Statistics: * **Disruption of Global Supply Chains:** UNCTAD reports that Trump's policies are actively disrupting global supply chains and generating new costs for businesses. * **Business Uncertainty:** The prevailing uncertainty is paralyzing business decisions, negatively impacting trade volumes. * **Downward Revision of Global GDP Forecasts:** * UNCTAD has lowered its global GDP growth forecast for the current year by **0.5%**, bringing it down from **2.8% to 2.3%**. * This revision is attributed to the current economic climate, which UNCTAD previously described as having global investment at "financial crisis levels." * **Impact on Developing Nations:** * Less developed nations are particularly vulnerable. Exports from these countries could **plummet by over half** due to the tariffs. * The "layering of tariffs" is expected to disproportionately affect the least developed nations. * **Vietnam, Cambodia, and Malaysia**, which had previously benefited from the "China Plus One" supply chain strategy, are now facing renewed impacts as supply chains are shifting again. * **Cambodia's exports to the U.S. represent over 10% of its GDP.** Tariffs could result in the loss of **over $4.5 billion in exports for Cambodia over the next four years.** * **Red Sea Disruptions and Inflation:** * Grynspan also highlighted inflationary pressures stemming from disruptions in the Red Sea, where attacks on freight vessels have increased. * The Red Sea situation alone could add **0.6% to global prices**, further exacerbating strain on the global supply chain. * **Complexity and Time for Deals:** Grynspan emphasized that trade deals are inherently complex and require time to finalize. The current environment of uncertainty is hindering economic growth and investment. ### Conclusion: The UNCTAD official's warning underscores the significant risks associated with escalating trade protectionism. The potential for a cascading negative effect on the global economy, particularly impacting vulnerable developing nations and contributing to inflation, is a major concern. The current climate of uncertainty is identified as a key impediment to economic growth and investment.
Trump’s Tariffs Threaten Global Economic Stability - Sharecafe
Read original at ShareCafe →A top United Nations trade official is warning that President Trump’s tariff policies could trigger a “cascade” effect across the slowing global economy if the steepest trade taxes are enacted. Rebeca Grynspan, Secretary General of UNCTAD, cautioned that tariffs on trading partners worldwide could lead to job losses and instability, particularly in less developed nations where exports may plummet by over half.
UNCTAD, the leading arm of the United Nations focused on trade and development, reports that Trump’s policies are already disrupting global supply chains and creating new costs.Grynspan highlighted the uncertainty paralyzing business decisions, impacting trade and leading to downward revisions in global GDP forecasts.
UNCTAD had previously released data showing global investment at financial crisis levels and forecasts a 0.5% reduction in global growth this year, lowering the global GDP forecast to 2.3% from 2.8%. The organisation monitors investment flows and helps developing countries integrate into the global economy.
Vietnam, Cambodia, and Malaysia, which previously benefited from the “China Plus One” supply chain strategy, are now facing impacts as supply chains shift again, according to Grynspan. She also pointed out that the layering of tariffs will disproportionately affect the least developed nations, potentially leading to a reduction in exports of over 50%.
Cambodia’s exports to the U.S., for instance, represent more than 10% of its GDP, and tariffs could erase over $4.5 billion in exports over the next four years.Grynspan also addressed the inflationary challenges arising from disruptions in the Red Sea, where attacks on freight vessels have increased.
She noted that the Red Sea situation alone could add 0.6% to global prices, further straining the global supply chain. According to Grynspan these deals are complex and take time to complete, and the current uncertainty is impacting economic growth and investment. Post Views: 74
