By February 2026, developed economies improved their relative tariff position in the US market by 3.5 percentage points. In contrast, developing economies saw a 2.7 percentage-point deterioration, while least developed countries faced a 2.1 percentage-point decline, signalling widening gaps in market access.
Sectoral shifts are also evident. In the wool market, China’s relative tariff position weakened by 11.31 percentage points, while New Zealand’s declined by 3.45 points. Australia posted a marginal 0.36-point gain. Peru and Uruguay improved their positions by 2 and 4.2 points, respectively, and Mongolia recorded the strongest improvement at 6.21 points, strengthening its competitiveness in the US market.
New US tariff measures are reshaping global trade, creating uneven gains and losses, according to UNCTAD.
Developed economies improved their relative tariff position by 3.5 points by February 2026; while developing and least developed countries saw declines.
Sectoral impacts, including in wool, show shifting competitiveness as tariff gaps redirect trade flows and sourcing decisions.
UNCTAD noted that uneven tariff hikes are driving trade diversion, as changes in duties alter price advantages and influence sourcing, production and investment decisions across global value chains.
In its Policy Insights titled Who wins when trade policies shift, the report cautioned that such shifts may constrain upgrading efforts in value chains, particularly for developing economies, adding that with tariff regimes becoming more fragmented, countries will need to closely monitor relative tariff movements, diversify export destinations and adopt targeted strategies to safeguard competitiveness.
Fibre2Fashion News Desk (CG)
