UNCTAD Urges U.S. to Ease Tariffs on Vulnerable Economies

The U.N. Trade and Development agency recommends that the U.S. exclude the poorest and smallest economies from its tariffs, arguing that such tariffs provide minimal benefit to U.S. trade objectives and could cause significant economic damage to these countries.

The United Nations Trade and Development agency has called on the Trump administration to reassess its tariff strategy by excluding the world's poorest economies from reciprocal tariffs. UNCTAD argues this would have minimal impact on U.S. trade goals.

The recommendation came after U.S. President Donald Trump imposed steep tariffs, ranging from 11% to 50%, on 57 trading partners. These tariffs were paused for most affected countries, except China, reducing the duty rate to 10%.

Citing economic vulnerability, UNCTAD's report highlighted the limited trade benefits the U.S. gains from small economies, which often lack significant export markets and possess low purchasing power. Additionally, many targeted countries export unique agricultural products, which could face price hikes amidst new tariffs.

(With inputs from agencies.)