A recent WTO report suggests that some Least Developed Countries (LDCs)—including Bangladesh, Cambodia, and Lesotho—may see a rise in exports to the US, especially in sectors like textiles, apparel, and electronics, where China currently dominates. This shift is due to declining US imports from China amid trade tensions and rising tariffs.
However, the overall outlook for global trade in 2025 has worsened, with a projected 0.2% decline in world merchandise trade, mainly due to tariff hikes and trade policy uncertainty. If suspended US reciprocal tariffs are reinstated and uncertainty spreads, global trade could fall by up to 1.5%.
While the LDCs may gain from US market reorientation, the simulated projections still show a slight decline in their GDP, highlighting that benefits may be limited by ongoing policy volatility.
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