Donald Trump's tariffs policy will disrupt Global South countries' development

The Trump administration announced new 25 percent tariffs on all steel and aluminum imports into the U.S. This move not only further disrupts the global trade order built on World Trade Organization (WTO) rules, but also poses significant challenges to the development of Global South countries.

As a group of economies heavily dependent on international trade, the Global South is particularly vulnerable to both the direct and indirect impacts of such a sweeping trade war. Rising trade barriers and more export restrictions not only hinder these countries' access to key markets, but also disrupt global supply chains, amplifying economic uncertainty across the Global South, reports CGTN.  This, in turn, may trigger a chain reaction of broader negative consequences. A particularly pressing concern is the severe challenge trade wars pose to the export-driven growth model that serves as the linchpin of Global South economies. Countries specializing in labor-intensive manufacturing may find their place in the global division of labor eroded, while those dependent on primary commodity exports could face heightened exposure to market volatility.

With protectionism rearing its head again, the Global South must sharpen up its ability to recognize changes, adapt strategically and proactively drive transformation. The Global South should take decisive actions to counter escalating trade frictions and economic challenges, with a focus on cultivating internal growth drivers and enhancing economic resilience.

At the national level, countries in the Global South must fine-tune domestic policies, push through economic transformation and enhance their competitiveness in the global value chain. In an era of rising external uncertainties, the Global South countries must work on adjusting domestic policies to strengthen economic resilience. This requires coordinating fiscal and monetary policies, advancing structural reforms, investing in education and technological innovation and improving the business environment while maintaining a firm commitment to trade liberalization and facilitation.

For resource-dependent countries in the Global South, this presents a valuable opportunity to drive domestic economic transformation by reducing reliance on primary commodity exports and fostering the growth of high value-added manufacturing and service industries. By enhancing industrial competitiveness, these countries can secure a stronger position in the global value chain and fortify themselves against external trade shocks.