Sparing the vulnerable: The cost of new tariff burdens
Vulnerable economies could face some of the highest new US tariffs, resulting in a decline of vital exports and posing substantial risks to their development
The participation of vulnerable economies in the global economy remains stubbornly low, despite provisions for special and differential treatment in the multilateral rulebook.
New tariff tensions risk further undermining the limited gains made by:
- Least developed countries
- Small island developing states
- Landlocked developing countries
A limited contribution to the US trade deficit
The United States is a vital export market for these economies, yet they account for only a small fraction of US imports and contribute just 0.3% to the US trade deficit.
A disproportionate burden
Despite contributing little to the US trade deficit, vulnerable economies could face some of the highest new US tariffs under a scenario in which the country unilaterally raises tariffs to the levels announced between January and May 2025, including new country-specific measures.
Such a scenario would threaten vital exports and pose serious risks to their development.
