This paper investigates the multidimensional impact of trade wars and tariffs on developing economies, examining trade diversion, inflation, FDIs, exports, etc. This study evaluates how nations are both vulnerable to and capable of adapting to the shifting trade landscape. It is crucial to keep in mind that trade wars are originally fabricated from protectionist policies such as tariffs and import quotas, aimed to implement measures to restrict international trade and protect domestic industries from foreign competition. However, the impact created by these “protectionist policies” have shown prominent changes, especially in the context of developing countries. Policy recommendations are offered to help developing nations craft resilient trade strategies, diversify their export markets, and mitigate adverse outcomes. The paper aims to provide a broader discourse on global economic impacts and trade interdependencies in the context of current and shortly preceding geopolitical tensions, especially in the context of developing nations and economies.
Jain et al. (Wed,) studied this question.