Doha: The UN Trade and Development (UNCTAD) called for exempting the poorest and most vulnerable economies from reciprocal tariffs. US President Donald Trump imposed steep import tariffs from 11% to 50% on 57 trading partners – including the European Union – on April 9 only to pause the duties hours later for 90 days for all of them but China. The pause has cut the rate for those states to 10%, a level he had imposed on nearly all other countries.
According to Qatar News Agency, in its report, entitled “Escalating Tariffs: the Impact on Small and Vulnerable Economies”, UNCTAD warned that in many cases, reciprocal tariffs risk devastating developing and least developed economies, without significantly reducing trade deficits or increasing revenue collection for the United States.
The 57 trading partners concerned – 11 of them least developed countries – contribute minimally to US trade deficits, the UN Trade and Development noted, adding that 28 out of these 57 trading partners each account for less than 0.1% of the deficits yet could still be subject to reciprocal tariffs.
Over the years, a rules-based global trading system has boosted international commerce and contributed to a gradual, steady decline in tariffs – a tax that countries levy on imported goods. In 2023, about two thirds of world trade occurred without tariffs, UNCTAD said.
In contrast, a sweeping spate of steeper tariffs recently introduced by major economies are raising concerns over escalating trade tensions and their impact on developing countries.