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.
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