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- UNITED NATIONS (AP) — The United Nations Conference on Trade and development (UNCTAD) is urging the United States to exempt the world's poorest economies from recently announced customs...
- governance's plan to impose tariffs on 57 countries, intended to address the U.S. trade deficit, risks devastating already fragile economies.
- The UN report highlights that the 57 countries, ranging from Angola to Vanuatu, contribute minimally to the overall U.S.
UN Warns US Tariffs Could Harm Vulnerable Economies
Table of Contents
- UN Warns US Tariffs Could Harm Vulnerable Economies
- UN Warns US Tariffs: What You Need to know
- what is the United Nations concerned about regarding U.S. tariffs?
- Which countries are potentially affected by these tariffs?
- Why does the UN believe these tariffs could be damaging?
- Are the tariffs intended to address the US trade deficit?
- What is meant by “mutual” tariffs in this context?
- Do the 57 countries targeted by the tariffs significantly impact the US trade deficit?
- What are some specific examples of products that could become more expensive for US consumers?
- how might these tariffs impact US consumers?
- What is the UN’s overall recommendation or conclusion?
- Summary of Key Points
UNITED NATIONS (AP) — The United Nations Conference on Trade and development (UNCTAD) is urging the United States to exempt the world’s poorest economies from recently announced customs duties. A new UNCTAD report expresses concern that proposed tariff increases by the U.S. and China could trigger a trade war,disproportionately impacting vulnerable nations.
Concerns Over “Mutual” tariffs
The report cautions that the U.S. governance’s plan to impose tariffs on 57 countries, intended to address the U.S. trade deficit, risks devastating already fragile economies. These tariffs, described by the U.S. as “mutual,” may not significantly reduce the trade deficit or increase U.S. tax revenue, according to UNCTAD.
Minimal Impact on US Deficit
The UN report highlights that the 57 countries, ranging from Angola to Vanuatu, contribute minimally to the overall U.S. trade deficit. Eleven of these nations are classified as less developed, and 28 account for less than 0.1% of the deficit individually. The report emphasizes that these smaller economies offer limited export opportunities for the U.S. due to their size and low purchasing power.
The report states that ”Any commercial concession on their part would have little value for the United States, and would possibly reduce their tax revenues,” adding that for 36 of the 57 commercial partners, mutual duties would generate less than 1% of current U.S. tariff revenues.
potential Price Hikes for US Consumers
Several countries facing potential tariffs export agricultural products that are not produced in the U.S.and have few substitutes. Examples include vanilla from Madagascar and cocoa from the Ivory Coast and ghana. In 2024, the U.S. imported $150 million worth of vanilla from madagascar. Cocoa imports totaled nearly $800 million from the Ivory Coast and $200 million from Ghana.
The UN concludes, “The increase in rates on these products, despite the potential increase in revenues, risks increasing prices for American consumers.”
UN Warns US Tariffs: What You Need to know
Here’s a breakdown of the UN’s concerns regarding potential U.S. tariffs, presented in a clear and informative Q&A format:
what is the United Nations concerned about regarding U.S. tariffs?
The United nations Conference on Trade and Progress (UNCTAD) is raising alarms about the potential negative effects of newly announced U.S.customs duties. Specifically, they’re worried that these tariffs could harm vulnerable, less developed economies around the world. They also express concern that tariff increases by the U.S. and China could trigger a broader trade war.
Which countries are potentially affected by these tariffs?
According to the UNCTAD report, the U.S. plans to impose tariffs on 57 countries. These nations range from Angola to Vanuatu. The report highlights the diverse range of economies that could be affected.
Why does the UN believe these tariffs could be damaging?
The UNCTAD report suggests that these tariffs could have several negative consequences:
Disproportionate Impact: The tariffs are likely to hit the world’s poorest economies the hardest.
trade War Risk: The tariffs, potentially escalating tensions with china, could escalate into a broader trade conflict.
Economic Devastation: The UN fears that already fragile economies will suffer.
Limited Benefit for the U.S.: The report argues the tariffs won’t significantly reduce the U.S. trade deficit or boost tax revenues. Specifically, for 36 out of the 57 commercial partners, the mutual duties would generate less than 1% of current U.S. tariff revenues.
Are the tariffs intended to address the US trade deficit?
Yes, the report states the US government’s plan to impose tariffs aims to address the US trade deficit.
What is meant by “mutual” tariffs in this context?
The term “mutual” in this context refers to reciprocal actions, where both the U.S. and the other country involved impose tariffs on each other’s goods. The report indicates these tariffs are intended to address the U.S. trade deficit.
Do the 57 countries targeted by the tariffs significantly impact the US trade deficit?
No, the UN report highlights that the 57 targeted countries collectively contribute minimally to the overall U.S. trade deficit. eleven of these nations are classified as less developed,and 28 account for less than 0.1% of the deficit individually. The report emphasizes that these smaller economies don’t offer ample export opportunities for the U.S. due to thier size and lower purchasing power.
What are some specific examples of products that could become more expensive for US consumers?
The UN report specifically mentions agricultural products that are not readily available in the U.S. and have few substitutes. Examples include:
vanilla from Madagascar
Cocoa from the Ivory Coast and Ghana.
In 2024, the U.S. imported $150 million worth of vanilla from Madagascar, $800 million worth of cocoa from the Ivory Coast, and $200 million of cocoa from Ghana.
how might these tariffs impact US consumers?
The UN report concludes that the tariffs risk increasing prices for American consumers, especially for products like vanilla and cocoa. Tariffs on essential imports could drive up the cost of goods.
What is the UN’s overall recommendation or conclusion?
The UN is urging the United States to exempt the world’s most vulnerable economies from these customs duties. They believe that the tariffs could trigger a trade war, devastating fragile economies.
Summary of Key Points
Here is a table summarizing the UN’s warnings about the potential impacts of U.S. tariffs:
| Concern | Potential Impact |
|---|---|
| Vulnerable Economies | Disproportionately affected; risk of economic devastation. |
| targeted Countries’ Impact on US deficit | Minimal; little impact on reducing deficits. |
| US Consumer Prices | Increased prices for certain imported goods (e.g., vanilla, cocoa). |
| trade War Risk | escalation of tensions; broader trade conflict. |
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