UNCTAD Secretary General Rebeca Grynspan warns that President Trump's tariff policies could severely disrupt the global economy, risking job losses and instability, especially in less developed nations.

These trade policies are causing a decline in global investment, with UNCTAD forecasting a 0.5% reduction in global growth for the year, revising the global GDP forecast down to 2.3% from 2.8%.

Trump's tariffs are disrupting global supply chains and increasing costs, which has led to downward revisions in global GDP forecasts.

Countries like Vietnam, Cambodia, and Malaysia, previously benefiting from supply chain strategies such as 'China Plus One,' are now experiencing negative impacts due to shifting supply chains caused by tariffs.

Grynspan also highlights inflationary pressures stemming from increased attacks on freight vessels in the Red Sea, which could raise global prices by 0.6%, further straining supply chains.

The ongoing uncertainty in global trade, exacerbated by these tariffs, is negatively affecting economic growth and investment decisions, as complex trade negotiations take time.

Tariffs are expected to disproportionately impact the least developed nations, with potential export reductions exceeding 50%, and Cambodia alone could lose over $4.5 billion in exports to the U.S. over the next four years, as its exports make up more than 10% of its GDP.