The United Nations Trade and Development (Unctad) agency has called on the US to spare vulnerable countries from high tariffs that might result in vital exports dwindling.

These vulnerable economies account for only a small fraction of US imports and contribute 0.3% to the US trade deficit and would have a marginal contribution to its tariff revenue, Unctad notes.

However, these 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.

For example, Lesotho faces a 50% tariff rate, Cambodia 49%, Laos 48%, Madagascar 47%, Myanmar 44%, Mauritius 40%, Guyana 38%, Bangladesh 37%, Botswana 37%, Angola 32%, and Fiji a 32% tariff duty on goods.

On April 2, the US imposed a universal 10% tariff on all imports. Additional country-specific tariffs are set to take effect in early July.

These measures will raise the cost of market access, even for countries with minimal contribution to global trade imbalances.

Least developed countries (LDCs) and developing countries in Asia and Oceania face the steepest increases. New import tariffs are set to reshape global trade dynamics and significantly raise trade costs for many developing countries, Unctad adds.

The participation of vulnerable economies in the global economy remains stubbornly low, despite provisions for special and differential treatment in the multilateral rulebook, Unctad says in its 'Sparing the vulnerable: The cost of new tariff burdens' report.

The vulnerable economies most exposed to the US tariffs, including LDCs and small island developing States, typically account for a tiny share of global trade, yet now face some of the steepest tariff increases from the US.

The new tariff tensions could further threaten the little gains made by LDCs, small island developing States and landlocked developing countries, it points out.

The US is vital for their exports, yet they make up only a small part of US imports. New US tariffs are an extra burden for vulnerable economies, it adds.

For example, about 25.3% of small island developing States' total exports are at risk, while the US faces only a 0.6% impact on its total imports.

Specifically, US tariffs may jump to more than 25% for 22 developing economies in July, including seven LDCs. Some tariff hikes, particularly on Chinese imports, have exceeded 100%, even after recent adjustments, Unctad notes.

Further, only 1% of exempted imports come from vulnerable economies, while only 7% of LDCs’ exports to the US are exempted.

Key sectors like agriculture and textiles, which are crucial for many vulnerable economies, are especially exposed.

Tariffs on LDCs have already doubled in April and could rise nearly threefold in July from 16% to 44%. Even without China, tariffs on developing countries in Asia and Oceania have already risen to 13% and could further increase to 24%.

For Latin America and the Caribbean, tariff levels have risen more than 40 times, from less than 0.5% to 13%, Unctad says.