1、The role of tariffs in international tradeKEY TAKEAWAYSTariffs remain a key tool in trade policy,but developing countries face higher duties that limit their global market access.High import tariffs raise costs for businesses and consumers,potentially curbing growth and competitiveness.Tariff escala

2、tion discourages developing economies from exporting value-added goods,hindering industrialization.Understanding tariff trends is crucial for policies that foster economic transformation and sustainable growth.Policy InsightsShuttersotckGlobal tradeUpdateMonthly publication analizing trade policy an

3、d global trade data.MARCH 2 0 2 5MARCH 2025Global tradeUpdatePolicy insights2Tariffs are an important tool in international trade policy.They serve as a mechanism to protect domestic industries and generate government revenue.While global trends indicate a general decline in tariff rates due to trad

4、e liberalization,and multilateral and regional trade agreements,developing countries continue to face higher tariffs.These dynamics shape their trade competitiveness and economic development prospects.For developing countries,tariffs play a crucial role in multiple dimensions.First,they serve as a s

5、ource of revenue,which is particularly important for economies with limited capacity to generate income through direct taxation.In many cases,tariffs contribute significantly to government budgets,financing essential services such as infrastructure,healthcare,and education.1 Second,tariffs can act a

6、s a policy instrument to support nascent industries.By imposing duties on imported goods,governments can create a more favourable environment for domestic industries to grow and compete.This form of protection is especially relevant in sectors such as agriculture,textiles,and light manufacturing,whe