IISD Trade and Sustainability Review, July 2025
Regional Perspectives on U.S. Tariffs
This edition of the IISD Trade and Sustainability Review features four in-depth analyses examining the multifaceted impacts of recent U.S. tariff policies on Latin America, the Middle East and North Africa (MENA), the rest of Africa, and Association of Southeast Asian Nations (ASEAN) countries. The authors explore Latin America's dual challenge of direct tariff disruptions and indirect risks from China's economic shifts, MENA's growing vulnerability to energy price volatility and geopolitical tensions amid its strategic neutrality, Africa's uneven economic impacts and the need for a coordinated continental strategy, and ASEAN's pragmatic and diverse responses to manage trade uncertainties. Together, these insights highlight the kaleidoscopic pressures on the global trade landscape, the economic and geopolitical challenges facing emerging regions, and the complexity of building resilience amid rising protectionism and geopolitical rivalry.
Read previous issues of the Trade and Sustainability Review here.
Introduction
Since President Trump's first day in office, U.S. tariff policy has dominated headlines and global trade policy debates, but much of the coverage focuses on major economies. In this new issue of the Trade and Sustainability Review, we shift the lens to explore how regions such as Latin America, the Middle East and North Africa (MENA), the rest of Africa, and Southeast Asia are experiencing and responding to these evolving trade measures.
Tariffs affect the price of everyday goods—like washing machines, clothing, and food—and can shape the future of jobs, exports, and livelihoods. Beyond immediate price changes, tariffs disrupt supply chains, create uncertainty for businesses, and can slow investment and growth, complicating efforts to achieve sustainable development goals.
This issue of the Trade and Sustainability Review brings together four timely and regionally grounded analyses that show how many of these effects could come to be. The articles explain how developing and least developed countries are experiencing and responding to the shifting U.S. tariff landscape. Liliana Rojas-Suarez and Ignacio Albe explore Latin America's dual exposure to direct U.S. tariff impacts and the broader economic risks tied to China's slowing demand. Yara Aziz examines how the MENA region, while less exposed to tariffs directly, faces rising trade turbulence through energy price volatility and mounting geopolitical strain. In Southeast Asia, Poppy S. Winanti analyzes ASEAN countries' varied yet pragmatic responses, including diplomatic engagement, regional coordination, and diversification strategies. Finally, Kholofelo Kugler and Tani Washington assess how African countries are navigating the consequences of a sweeping new U.S. tariff regime. They highlight both the economic risks to countries like Lesotho and Madagascar and the potential opportunities for others like Egypt and Kenya, while also calling for a cohesive continental strategy aligned with Africa’s broader regional integration goals.
Together, these articles provide a diverse and insightful look at how developing regions are adapting to the ripple effects of tariff policies and seeking more resilient, equitable positions in global trade.
Happy reading,
Articles
U.S. Tariffs Hit Latin America Hard—But China's policy response may matter even more
Liliana Rojas-Suarez and Ignacio Albe highlight how U.S. tariffs impact Latin America while underscoring that China's policy reaction and economic health may present an even greater challenge for the region's growth and stability.
Read article here.
MENA at the Crossroads: Growing exposure to trade turbulence, tariffs, and strategic strain
Yara Aziz explores how MENA's seemingly low direct exposure to U.S. tariffs conceals deeper risks from global trade disruptions, energy market instability, and geopolitical tensions that could challenge the region's traditional non-alignment amid rising U.S.–China competition.
Read article here.
The ASEAN Members' Response to Trump's Liberation Day: Multifaceted and pragmatic approaches
Poppy S. Winanti analyzes ASEAN countries' pragmatic responses to U.S. tariffs, highlighting negotiation, regional cohesion, and market diversification as key strategies to manage risks and strengthen resilience.
Read article here.
How Africa Is Responding to U.S. Tariff Policies
Kholofelo Kugler and Tani Washington explore how African countries are responding to a new U.S. tariff regime, highlighting uneven economic impacts and calling for a coordinated continental strategy to protect trade and integration goals.
Read article here.
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