September 5, 2025Open Access

Asymmetric Economic Impact of U.S. Tariffs on Low-Income Countries: A Focus on South and East Asia

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U.S. tariffs lead to greater GDP reductions in low-income countries compared to higher-income nations.
The impact of tariff shocks on export competitiveness is magnified in economies like India and Vietnam.
Empirical trade data reveals that structural dependency and limited fiscal buffers increase vulnerability to tariffs.
The findings suggest a need for adjustments in U.S. trade policy, considering the specific challenges of lower-income economies.

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Analysis shows U.S. tariffs reduce GDP growth and export competitiveness in low-income countries, highlighting trade policy implications.

Hemendra Pal (2025) studied this question.

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