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World Bank: Developing Nations' Tariffs Fail to Drive Growth

3/18/2026

Summary

Story summary

The World Bank reports developing countries pursue industrial policies but rely on tariffs and subsidies that are ineffective.
Low-income nations target 13 industries, while wealthier countries focus on fewer sectors.
Tariffs in low-income countries average 12%, likely not fostering growth.
South Korea, Romania, and Brazil show targeted policies yield better results.
The World Bank urges shifting from blunt instruments to precise strategies amid rising trade tensions.

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Story summary

The World Bank reports developing countries pursue industrial policies but rely on tariffs and subsidies that are ineffective.
Low-income nations target 13 industries, while wealthier countries focus on fewer sectors.
Tariffs in low-income countries average 12%, likely not fostering growth.
South Korea, Romania, and Brazil show targeted policies yield better results.
The World Bank urges shifting from blunt instruments to precise strategies amid rising trade tensions.