Poor countries could gain three times more from free trade than they lose to new tariffs

New tariffs from rich countries will hurt developing economies, especially in exposed sectors. But if developing countries drop their own tariffs and trade barriers, they could gain much more.

For years, developing countries have used tariffs to protect local industries, but this often makes their own goods more expensive and less competitive. This paper shows that the cost of these self-imposed barriers is far greater than the damage from new tariffs imposed by rich countries. It means that developing countries have a clear economic incentive to open their own markets, even if global trade becomes more protectionist.