The growing trade fight between the United States and China could bring serious harm to developing nations. Pamela Coke Hamilton, the Executive Director of the International Trade Centre, warned about this risk during a recent statement.

She leads the agency formed by both the United Nations and the World Trade Organization. According to her, the rising tariffs between the two economic giants may cause more damage than cutting foreign aid.

“It is huge. If this escalation between China and the U.S. continues it will result in an 80 per cent reduction in trade between the countries, and the ripple effect of that across the board can be catastrophic,” she said.

Developing Nations May Suffer the Most

Coke Hamilton stressed that poor countries would likely feel the worst impact. While many focus on foreign aid, she pointed out that tariffs can do even more damage.

"Tariffs could have a much more harmful impact than the removal of foreign aid," Coke-Hamilton warned. She explained that developing countries often depend on global trade to survive. Therefore, a breakdown between the U.S. and China could shake their economies.

Global Trade and Growth at Risk

Meanwhile, the International Trade Centre released new estimates. It predicted that global trade could drop by 3 to 7 percent. In addition, global GDP could fall by 0.7 percent.

As a result, developing countries would take the hardest hit. Coke Hamilton urged global leaders to take these risks seriously and work toward easing tensions.