The United Nations Conference on Trade and Development (UNCTAD) is calling on the Trump administration to exempt the world's poorest and smallest nations from "reciprocal" tariffs, warning of "serious economic harm."
In a report released Monday, UNCTAD highlighted 28 countries singled out by the U.S. president for tariff rates significantly higher than the 10% baseline, despite each accounting for less than 0.1% of the U.S. trade deficit. These nations face disproportionately high tariffs, with Laos facing a potential 48% tariff, Mauritius 40%, and Myanmar 45%, even as it recovers from a devastating earthquake.
The Trump administration's announcement of these punitive tariff rates earlier this month shocked many developing countries. President Trump justified the tariffs by claiming that rival economies had "looted, pillaged, raped, plundered" the U.S. with unfair trade practices, aiming to "level the playing field."
UNCTAD argues that these targeted countries, due to their small size and modest export levels, pose little threat to the U.S. economy.
Following market turmoil, the White House has paused the implementation of these higher tariffs for 90 days, maintaining a 10% levy across the board. However, the administration's official stance is that the "reciprocal" tariff rates will be implemented, subject to negotiations.
"The current 90-day pause presents an opportunity to reassess how small and vulnerable economies – including the least developed countries – are treated," UNCTAD stated. "This is a critical moment to consider exempting them from tariffs that offer little to no advantage for U.S. trade policy but risk causing serious economic harm."
UNCTAD's analysis reveals that many of these economies are unlikely to significantly increase demand for U.S. exports, even with lower tariffs, as the White House seems to demand. For example, Malawi, facing 18% tariffs, purchased only $27 million in U.S. exports last year, while Mozambique, facing 16% tariffs, bought $150 million, and Cambodia, facing 49% tariffs, $322 million.
UNCTAD experts further noted that 36 of these small and poor countries would generate less than 1% of total U.S. tariff revenue, even if the U.S. maintained import levels despite the tariffs.
In a report released Monday, UNCTAD highlighted 28 countries singled out by the U.S. president for tariff rates significantly higher than the 10% baseline, despite each accounting for less than 0.1% of the U.S. trade deficit. These nations face disproportionately high tariffs, with Laos facing a potential 48% tariff, Mauritius 40%, and Myanmar 45%, even as it recovers from a devastating earthquake.
The Trump administration's announcement of these punitive tariff rates earlier this month shocked many developing countries. President Trump justified the tariffs by claiming that rival economies had "looted, pillaged, raped, plundered" the U.S. with unfair trade practices, aiming to "level the playing field."
UNCTAD argues that these targeted countries, due to their small size and modest export levels, pose little threat to the U.S. economy.
Following market turmoil, the White House has paused the implementation of these higher tariffs for 90 days, maintaining a 10% levy across the board. However, the administration's official stance is that the "reciprocal" tariff rates will be implemented, subject to negotiations.
"The current 90-day pause presents an opportunity to reassess how small and vulnerable economies – including the least developed countries – are treated," UNCTAD stated. "This is a critical moment to consider exempting them from tariffs that offer little to no advantage for U.S. trade policy but risk causing serious economic harm."
UNCTAD's analysis reveals that many of these economies are unlikely to significantly increase demand for U.S. exports, even with lower tariffs, as the White House seems to demand. For example, Malawi, facing 18% tariffs, purchased only $27 million in U.S. exports last year, while Mozambique, facing 16% tariffs, bought $150 million, and Cambodia, facing 49% tariffs, $322 million.
UNCTAD experts further noted that 36 of these small and poor countries would generate less than 1% of total U.S. tariff revenue, even if the U.S. maintained import levels despite the tariffs.
