The United Nations Conference on Trade and Development (UNCTAD) highlights in a statement that among nearly 200 trading partners of the United States, only ten account for almost 90% of its trade deficit, while tariffs affect the least developed countries and small island developing states, which contribute just 1.6% and 0.4% to the U.S. deficit, respectively.
These poorer nations “will not contribute to rebalancing the trade deficit nor generate significant revenues,” the UNCTAD notes.
“Many low-income economies are currently facing a ‘perfect storm’ of worsening external conditions, unsustainable debt levels, and slowing domestic growth,” added the UN agency.
More broadly, the UNCTAD warns of negative consequences for the global economy.
“In a slow-growing and highly indebted global economy, higher tariffs risk weakening investments and trade flows, adding uncertainty to an already fragile environment,” the statement continued.
“This could undermine confidence, slow investments, and threaten development gains, especially in the most vulnerable economies,” added the UNCTAD.
In the announcement, Grynspan argues that “this is a time for cooperation, not escalation.”
“Global trade rules must evolve to address current challenges, but they must do so with predictability and development in mind, to protect the most vulnerable,” said the UNCTAD Secretary-General.
The UN expressed concern today over the impact of U.S. tariffs on the most vulnerable countries and also on achieving the Sustainable Development Goals (SDGs), a set of 17 global targets established by the United Nations General Assembly.
“Our concern now is with the most vulnerable countries, which are the least prepared to handle the current situation,” said UN Secretariat spokesperson Stéphane Dujarric when asked about the ongoing tariff wars.
Dujarric indicated that the UN leader, António Guterres, believes “in a trade war, nobody wins.”
On Wednesday, a day he called “liberation day,” Trump imposed a minimum tariff of 10% on imports from 184 countries and territories, including the European Union.
In the case of China, Trump announced a tariff of 34%, adding to the existing 20% and raising the total to 54%.
Among the nations with the highest tariffs announced by Washington are some of the world’s lowest-income countries, such as Lesotho, Cambodia, Laos, Madagascar, and Myanmar (formerly Burma), with new tariffs exceeding 45%.
The high tariffs have triggered a drop in dollar, oil, and global stock markets, with financial markets anticipating a decline in global growth and trade.
China announced today that it will impose a 34% tariff on imports of all U.S. products starting next Thursday, April 10.
The new tariff matches the “reciprocal” U.S. tariff imposed by President Donald Trump this week.
The Ministry of Commerce in Beijing also stated, in a communiqué cited by the AP, that it will impose more export controls on rare earths, which are materials used in high-tech products such as semiconductors and electric vehicle batteries.
The European Union has not announced any retaliatory measures to the 20% tariffs imposed by Donald Trump but reiterated its commitment to “serious negotiations.”
