The United Nations Conference on Trade and Development (UNCTAD) is urging the Trump administration to exempt the world’s poorest nations from the recently announced “reciprocal” tariffs, which could otherwise cause severe economic damage.
In a report released on April 14, UNCTAD identified 28 small and vulnerable countries that have been targeted with punitive tariffs, despite each contributing less than 0.1% to the US trade deficit.
Among the most heavily impacted:
- Laos: facing 48% tariffs
- Mauritius: hit with 40%
- Myanmar: burdened by 45%, even while recovering from a natural disaster
“Little to No Advantage for US Trade Policy”
While President Trump claims the new tariffs are necessary to fight “unfair trade practices” and revive US manufacturing, UNCTAD argues otherwise.
“These small economies are not a threat to the US,” said the UN trade body. “The damage these tariffs will cause far outweighs any minimal gain.”
In fact, the economic footprint of many targeted countries is negligible:
- Malawi, facing 18% tariffs, imported only $27 million in US goods last year
- Mozambique ($150 million in US imports) is facing 16% tariffs
- Cambodia, with $322 million in trade, will be subject to 49% tariffs
UNCTAD also emphasized that 36 of the targeted countries would contribute less than 1% of total US tariff revenue — even if trade volumes remained unchanged.
Export Commodities at Risk: Cocoa, Vanilla, Textiles
Many of these nations are primarily agricultural exporters, supplying goods the US cannot realistically produce itself:
- Vanilla from Madagascar ($150 million in imports, facing 47% tariffs)
- Cocoa from Ghana and Ivory Coast (nearly $1 billion combined)
- Textiles, seafood, and coffee from various African and Southeast Asian countries
The outcome? Higher consumer prices in the US, with no domestic manufacturing replacement in sight.
African Growth and Opportunity Act (AGOA) Undermined
Previously, countries across sub-Saharan Africa benefited from AGOA, a US program offering tariff-free access to American markets to support development and trade.
But Trump’s new policy effectively nullifies AGOA, placing many former beneficiaries under high tariff brackets, including some of the least developed nations on the planet.
Tariff Pause Offers a Window for Reconsideration
Following market turmoil, the White House has issued a 90-day pause on most higher tariff rates, maintaining a 10% baseline during this period.
UNCTAD sees this as an opportunity to “reassess the treatment of small, vulnerable economies.”
They urge the administration to permanently exempt least developed countries (LDCs), many of which:
- Pose no competitive threat to US industries
- Are recovering from crises or conflict
- Have no ability to absorb the economic shock
Trump’s Mixed Messages Add to Uncertainty
Even as exemptions for electronics like laptops and smartphones were announced, President Trump muddied the waters in a weekend Truth Social post, saying “no one is off the hook” and threatening investigations into “the whole electronics supply chain.”
This policy whiplash has left developing nations, foreign investors, and global markets uncertain about what to expect next.
Conclusion
The UN’s call to action is clear: Trump tariffs on developing countries are a disproportionate economic blow to nations that can least afford it. Exempting them is not just a moral imperative — it’s a logical economic decision.
As negotiations unfold during the 90-day tariff pause, the world watches to see if the US will prioritize global equity or escalate economic protectionism.
