The United Nations, UN, through its trade and development arm, UNCTAD, has warned President Donald Trump of an impending ‘serious economic harm' over the global reciprocal tariffs.
The UN called on the American leader to exempt the world’s poorest and smallest countries from “reciprocal”; tariffs, or risk “serious economic harm”;.
In its report on Monday, UNCTAD identified 28 countries Trump should singled out for a higher tariff rate than the 10% baseline.
Some of such countries are Laos, which is hit by 48% tariff; Mauritius, on 40%; and Myanmar, to be hit with 45%.
President Trump and his had earlier this month slammed countries around the world with new tariff rates
According to the Republican, rival economies had “looted, pillaged, raped, plundered”; the US with unfair trade practices.
However, UNCTAD pointed out that many of the countries in Trump’s list were unlikely to be a threat to America's economy.
Trump had last week put the higher tariff rates on pause for 90 days.
Unctad said, “The current 90-day pause presents an opportunity to reassess how small and vulnerable economies – including the least developed countries – are treated.
“This is a critical moment to consider exempting them from tariffs that offer little to no advantage for US trade policy but risk causing serious economic harm.”;
UNCTAD's analysis said many of these economies were so small that they are likely to generate little demand for US exports, even if they lowered tariffs, as the White House appears to be demanding.
Malawi, facing 18% tariffs, bought just $27m of US exports last year; Mozambique, which faces 16% tariffs, $150m; Cambodia, set for 49% tariffs, $322m.
UNCTAD's experts added that 36 of these small and poor countries were likely to generate less than 1% of total US tariff revenue, even if the US did not cut imports from them as the tariffs took effect.
UNCTAD highlighted the $150m in vanilla imported from Madagascar, close to $800m in cocoa from Ivory Coast and $200m in cocoa from Ghana.
With Madagascar set to face 47% tariffs, for example, the report said the main impact on the US was likely to be higher prices for consumers.
