Impact of Global Trade Tariffs on Emerging Markets

Abstract

Global trade tariffs, as tools of economic policy, have significant implications for international trade relations, particularly for emerging markets. This paper examines the impact of global trade tariffs on emerging economies, focusing on both the short- and long-term economic effects. The paper reviews scholarly literature, empirical studies, and real-world examples to analyze how trade tariffs influence trade flows, foreign direct investment (FDI), inflation, exchange rates, and economic growth in emerging markets. It concludes that while trade tariffs may offer short-term protection for certain industries, they often disrupt global supply chains and reduce the overall economic growth prospects of emerging markets.