Geneva [Switzerland], April 15 (ANI/ WAM): In a new report released on April 14, UN Trade and Development (UNCTAD) is amping up calls that the poorest and most vulnerable economies be exempt from "reciprocal tariffs."
Such tariffs, currently on pause for 90 days, were calculated at rates to balance bilateral merchandise trade deficits between the United States and 57 of its trading partners, which range from 11 per cent for Cameroon to 50 per cent for Lesotho.
The report, entitled "Escalating tariffs: The impact on small and vulnerable economies", finds that in many cases, reciprocal tariffs risk devastating developing and least developed economies, without significantly reducing US trade deficits or increasing revenue collection.
The 57 trading partners concerned - 11 of them least developed countries - contribute minimally to US trade deficits, UN Trade and Development notes.
28 out of these 57 trading partners each account for less than 0.1 per cent of the deficits yet could still be subject to reciprocal tariffs.
As many of these economies are small in size, structurally weak with low purchasing power, they offer limited export market opportunities for the US.
"Any trade concessions they grant would mean little to the United States, while potentially reducing their own revenue collection," the UN Trade and Develop report underscores.
For each of 36 of the 57 trading partners, the reciprocal tariffs would generate less than 1 per cent of US current tariff revenues.
The report also notes that several countries facing potential reciprocal tariffs export agricultural commodities the US doesn't produce, for which there are few substitutes.
Some examples can be vanilla from Madagascar or cocoa from Cote d'Ivoire and Ghana.
In 2024, the US imported vanilla worth approximately USD 150 million from Madagascar. Cocoa imports from Cote d'Ivoire were close to USD 800 million, while imports from Ghana were valued at about USD 200 million.
Increasing tariffs on these goods, despite possibilities to add some revenues, is likely to result in higher prices for consumers. (ANI/ WAM)
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor