US tariffs on key imports from poor nations threaten economic stability, as UN calls for exemptions to avoid devastating impact.
The UN’s Call for Exemptions from Reciprocal Tariffs
A farmer with a bunch of green vanilla pods in Madagascar. The US imports $150m worth of vanilla from the country.
Photograph: Hereward Holland/Reuters
Many countries targeted by high tariff rates are unlikely to be a threat to US business, according to a report by the UN’s trade and development arm, ‘Unctad‘.
The US has imposed ‘reciprocal’ tariffs on 28 nations, including Laos, which faces a 48% tariff, Mauritius, with a 40% rate, and Myanmar, set for 45%. Despite accounting for less than 0.1% of the US trade deficit, these countries are expected to face significant economic harm.
The Impact on Developing Countries
Unctad says that many of these economies are small and vulnerable, making them unlikely to pose a threat to US trade policy. The report highlights several examples, including Malawi, which imports just $27m worth of US goods last year, and Mozambique, with imports valued at $150m.
Located in southeastern Africa, Malawi is a landlocked country bordered by Zambia, Tanzania, and Mozambique.
The country has a diverse geography, with the Shire Highlands in the south and the Nyika Plateau in the north.
Lake Malawi, also known as Lake Nyasa, is one of the largest lakes in Africa and accounts for approximately 20% of the country's area.
Malawi gained independence from British colonial rule in 1964.
The logic behind the tariff policy is meant to bring manufacturing jobs back to the US, but for some tiny countries, their key exports are agricultural commodities that the US is unlikely to find substitutes for elsewhere. This could lead to serious economic harm, particularly if these countries are forced to cut imports from them as tariffs take effect.
A Critical Moment for Exemptions
Unctad’s analysis suggests that 36 of these small and poor countries generate less than 1% of total US tariff revenue, even if the US does not cut imports from them. The report argues that it is a critical moment to consider exempting these economies from tariffs that offer little to no advantage for US trade policy but risk causing serious economic harm.
The UN’s call for exemptions is part of a broader effort to reassess how small and vulnerable economies are treated in the face of changing global trade policies. As the administration pauses its formal position on the higher tariff rates, Unctad urges policymakers to consider the potential consequences of these measures on developing countries.
- theguardian.com | UN calls on Trump to exempt poorest countries from ‘reciprocal’ tariffs
