NEW DELHI: The US is one of the biggest trading partners of China. It makes China particularly exposed to tariff pressures. According to data from Beijing’s customs authorities, in 2024, Chinese exports to the US exceeded $500 billion, accounting for 16.4% of the country’s total exports. It imports from the US were worth $143.5 billion, with much of that trade centred around agricultural products — particularly oilseeds and grains — according to the US Trade Representative’s office.
Pamela Coke-Hamilton, head of a joint UN-WTO agency, warned that the “economic fallout from escalating US-China tariffs could be more damaging than cuts to foreign aid.” She added that this “escalation could result in an 80% drop in trade between the US and China, with catastrophic ripple effects globally”.
According to experts, tariff restructuring would have serious ramifications on developing countries. An estimate published by the International Trade Centre suggests the tariff restructuring is going to cause a 3-7% decline in global trade and a 0.7% drop in global GDP, with developing economies being hit the hardest.
The report, using Bangladesh as a case study, showed that US tariffs of 37% on textiles could cost $3.3 billion in economic losses for that country. As for Sri Lanka, its economic recovery would be impeded, as exports to the US have been tariffed at 44%. The US is the largest buyer of Sri Lanka’s exports (25% of its $12 billion merchandise exports goes to the US).
Nations like Mauritius, Madagascar, Lesotho, and South Africa are also vulnerable. The potential revocation of the African Growth and Opportunity Act (AGOA), up for review in September, could further deepen the impact.
