Friday, August 1, 2025

The Truth Banishes Fear!

Breaking Down the $450B of Trade Destruction from U.S. Tariffs

The New Diplomat
Writer

Ad

Civil Society Bodies Back NNPCL’s GCEO Ojulari, Accuse”Fifth Columnists Of dubious Plots to Undermine Steady Positive Results”

Back Tinubu, Ojulari, Urge Stakeholders to Ignore fifth Columinsts dirty Schemes By Abiola Olawale A coalition of civil society groups, alongside the Coalition of Concerned Stakeholders in the Gas and Petroleum Sector (CCSGP), have thrown their weight behind Engr. Bashir Bayo Ojulari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited…

Tension, Drama as FG, Nigerian Nurses Clash Over Strike

 FG: "Nurses Have Agreed to Suspend Strike"  Nurses to FG: "That's a Lie, We are Still on Strike" By Abiola Olawale A heated standoff between the Federal Government (FG) and the National Association of Nigerian Nurses and Midwives (NANNM) reached a boiling point on Friday as negotiations over a nationwide nurses’ strike reportedly ended deadlock,…

Ad

This graphic, created in partnership with the Hinrich Foundation, shows the dollar value of expected trade destruction by economy. It uses data from the UN’s TINA model.

Trump 2.0 Tariffs

Since taking office in late January, President Trump has prioritized disrupting global trade to support domestic industries across America. While tariff details shift frequently, the message is clear: globalization is under threat.

So far, most countries face a 10% tariff. The U.S. has chosen to hit key trading partners—like China, Canada, and Mexico—and industries, such as dairy and lumber, with even steeper penalties.

Trade Destruction: UN Estimates

To measure the long-term impact of the tariffs, the UN estimated trade destruction—also known in econometric terms as “negative trade creation”—by country economy.

Estimates are based on expected changes in import demand, factoring in tariff rates, initial import volumes, and supply and demand elasticities.

The total projected trade loss is a staggering $450 billion. The biggest hits are expected in China (-$156.6 billion), the EU (-$92.6 billion), and Japan (-$27.7 billion). Canada and Mexico, targets of an earlier set of tariffs, were excluded by the UN from this dataset.

Rank Affected Economy Trade Destruction ($ trillions)
1 🇨🇳 China 156.6
2 🇪🇺 EU 92.6
3 🇯🇵 Japan 27.7
4 🇻🇳 Vietnam 22.5
5 🇰🇷 South Korea 22.2
6 🇮🇳 India 14.6
7 🇹🇭 Thailand 10.3
8 🇬🇧 UK 9.1
9 🇧🇷 Brazil 8.7
10 🇮🇩 Indonesia 6.8
Other 78.9
Total 450.1

The expected hit to trade will also adversely impact the domestic economy. The Tax Foundation estimates that Trump 2.0 tariffs are will lower U.S. real GDP by 0.8% over the next decade.

The Future of Global Trade
Globalization and the rise of global trade have fueled economic growth worldwide. By enabling countries to specialize based on comparative advantage, trade made goods more affordable and widely available.

Now, that landscape is shifting. The Trump administration’s tariff policies signal a significant turn in global trade strategy, with far-reaching implications for how countries engage in commerce moving forward.

Credit: Visual Capitalist

Ad

X whatsapp