UN Trade Chief Urges US to Exempt Developing Countries From Tariffs

Rebeca Grynspan, head of the UN trade agency (UNCTAD), has called for the exemption of the poorest countries from the US's unilateral trade tariffs, noting that these nations contribute minimally to the US trade deficit. This appeal follows growing concerns from the UN about the detrimental effects of ongoing trade wars, highlighted by Secretary-General António Guterres who warned that tariffs could lead to devastating impacts on vulnerable economies. Grynspan emphasized that imposing tariffs will have widespread repercussions, warning of a 'new normal' of low growth and high debt that could exacerbate existing crises for developing nations. She urged the US to reconsider its tariff strategy, which could worsen the debt situations of the 44 Least Developed Countries. Moreover, she advocated for enhanced regional trade ties to empower these nations in international negotiations. The situation is underscored by fears that current trade tensions could destabilize the post-war international financial system.