American Tariffs move could see three percent drop in global trade, says the UN economist of the UN economist

Speaking in Geneva After the announcement on Wednesday of the White House of the 90-Day Pausing “Reciprocal Tariffs” for most countries, except for China, Mrs. Coke-Hamilton has noticed that Export from Mexico was already “highly affected” earlier seismic changes in American trade policy.

“Countries such as Mexico, China and Thailand, but also countries in South Africa are among the most affected, along with the US“” She said.

While a 90-day break on the so-called reciprocal tariffs refers to imports from most countries and brings rates on the still rage 10 percent, import tariffs from China currently standing at 145 percent.

China, meanwhile, raised tariffs against American exports – in the effect of importing taxes on goods – to 125 percent.

Mexico export products have already switched from the market such as the USA, China, Europe and other Latin American countries so that “modest winnings” instead in Canada, Brazil, “and insisted in lesser.

Shrinks in trade flows

Other countries followed a suit, including Vietnam, Whose exports is redirected from the US, Mexico and China “, while” significantly increases “towards the EU, the Republic of Korea and othersMs. Coke-Hamilton said, whose specialized UN agency offers help developing countries.

The problem of emerging economy is that they are less well equipped for “turned” when they are faced with “ITC, because the production of production and the ability to add value to raw goods of industrialized nations.

Specially vulnerable USA’s trading partners include Lesotho, Cambodia, Lao PDR, Madagascar and Myanmar who are “most exposed,” she continued.

Confirming that the World Trade Organization (WTO) had estimated that trade between China and the US could lower up to 80 percent If the very unusual situation continues, the ITC executive secretary pointed out that they have constituted only “three percent to four percent world trade … (TA) There is 96 percent, it is still trading and it will trade“.

‘No stability’

Nevertheless, the influence of “an unspecified extension of 90 days on and” was not good for global trade and “does not necessarily give stability,” Mrs. Coke-Hamilton continued.

“Whether there is an extension, on the still, The fact that there is no stability, there is no predictability to influence trade and firms and decisions made in real time.”

She added: “This would not be the first time that in the World Economic System were tremors. We have seen in the last 50 years in different dispensations. This is probably a little sharper, a little third.”