Trade wars threaten women’s economic rights in fragile economies

‘Liberation day’ has been sounding the alarms since President Trump executed his infamous reciprocal tariffs targeting US trading partners around the world.  

The latest tariffs range from a base of 10 per cent (for most nations) with China now at 104 per cent. They paint a picture of a financial storm herding the world into ramifications that will soon trickle down to the household level. 

Trade wars are not new and have existed between major economic powers around the world for centuries -from World War II to the US and Japan dispute in the 1950s to the US-China dispute in 2020 amongst others. This latest debacle has been hailed as one of the most punitive of its time also targeting countries in the Global South especially when the world is facing an economic crisis. 

While the stakes are high with markets counting devastating losses, we’ve seen countries vowing counter and retaliatory measures with far reaching consequences to the most marginalised citizens including women. 

No one is talking about gender equality in these trade wars

Global trade is well known to have multifaceted advantages for women creating opportunities where they can have dignified livelihoods and contribute to just and fair societies. It is a driver of women’s economic rights through job creation in export-oriented sectors such as textiles, apparel, manufacturing, oil and gas and agricultural products amongst others. 

According to the UN Trade and Development (UNCTAD), despite the potential of export sectors on women’s economic advancement, there remain massive gaps undervaluing women’s contributions. This is seen especially in high value sectors such as agriculture, textiles, industries and services. 

In Sub Saharan Africa, the African Growth and Opportunity Act (AGOA) has been instrumental in increasing trade between the US and African nations. AGOA has created economic diversification with bipartisan agreements such as supporting smallholder women farmers and jobs creation in various export-facing industries. Countries such as Lesotho that have enjoyed quota free access through AGOA to US markets now stand in jeopardy with far reaching effects to its textile industry. 

In South Asia, countries have also had their fair share of the plunge with recession fears that will affect textile, apparel and electronics exports. This is happening in tandem with current gender inequalities that already exist such as wage discrimination and lower participation rates for women in export trade. 

The impact of global trade wars exacerbates gender inequality far much more than the potential of economic losses. It’s been long argued that the global economy has been built on a capitalist system that has historically marginalised women increasing their vulnerability to poverty and violence. 

This latest global development is no different particularly at a pivotal time in 2025 when countries around the world are marking 30 years since the Beijing Declaration and Platform for Action. The very countries currently immersed in these trade wars made a commitment to equal rights for women and girls. 

As countries pivot to re-strategise, one may ask, are policies being examined to look at how the current retaliatory tariffs will widen the existing gender gaps if not addressed? Are the decisions being made incorporating gender responsive elements? 

Women’s economic rights will take a hit

Here’s a hard look at how these tariffs will further reverse the gains in women’s economic rights. 

First- women are drivers of the global economy. In countries in the Global South, export-oriented sectors form the backbone of their economies. These latest tariffs threaten jobs with pressures forcing industries to cut costs in countries including Lesotho and Cambodia that heavily export to the US. 

With the current uncertainties forcing companies to undertake swift cost-cutting measures to salvage profits, employability opportunities in companies that support women will be the first to disappear. This will unfortunately backtrack progressive decent work policies in ending workplace violence and harassment and leadership training programmes for women, especially for entry-level or manual workers. 

The gender pay gap has been a perennial issue for decades becoming endemic across many job sectors around the world. The heightened tariff wars will further widen the pay gap with wage freezes resulting in resource constrains in households. This will reduce women’s access to quality healthcare and education further worsening their quality of life in already fragile economies. 

But also, job losses will contribute to the current immigration crisis triggering cross-border migration further exposing women to violence, poverty, trafficking and economic abuse. Statistics from UN Women indicate that half of the 244 million migrants and 19.6 million refugees are women. 

A gender-responsive lens to global trade

So, how can countries greater respond to these looming tariffs not only cushioning their economies but including mitigation strategies inclusive of gender-responsive solutions? 

It’s about time that gender-responsive trade policies move from paper to action. Trade policies without a gender lens will continue to reinforce gender stereotypes denying women opportunities to self-determine their economic agency. This would contribute to not only global development but prosperous societies. 

Feminist economics also argues that the current structure of social protection systems offers no protection in volatile economic disruptions like this. Women are still bearing the burden of unpaid labour and trade policies continue to perpetuate this. There’s need to invest in social protection systems that provide economic security even with trade disruptions while also supporting their participation in trade. 

Collective bargaining power is an important means of not only reducing the gender pay gap but show how unionising is an essential tool of combating low wages and valuing women’s contribution to work. With this financial storm, women in sectors such as manufacturing will not be immune to these tariffs in addition to those employed in value chain industries such as agriculture, electronics and textiles. At such a time, collective bargaining is critical in guaranteeing job security by cushioning women workers from layoffs during trade wars and negotiating equitable severance packages. 

Lastly, this is the time to bolster support for women entrepreneurs seeking to enter global value chains such as international trade. Small businesses owned by women account for significant global economic growth, but they continuously must navigate barriers such as limited access to finance, technology and ability to expand into international markets. 

Trade policies may appear to be gender-neutral and as many countries rush to salvage their economies, there’s need to mainstream gender perspectives in international policy approaches that empower women economically, protect their livelihoods and advance gender equality. Let’s advance global trade policies and agreements that work for women.