Key Takeaways
- UNIDO criticises U.S. tariff hikes, calling for a more cooperative approach to global economic development and industrial growth.
- The tariff hikes drive up the cost of industrial production, undermining economic efficiency, diminishing the benefits of trade, and weakening competitiveness.
- The negative effects of escalating tariffs will affect not only already vulnerable countries but also the very countries implementing tariffs, exacerbating geopolitical tensions and uncertainty.
Vienna: The United Nations Industrial Development Organisation (UNIDO) on Friday published an article on its website, expressing concern over the adverse effects of the United States’ recent tariff increases on global economic development and industrial growth.
UNIDO asserted that the tariff hikes “take the wrong approach,” pointing out that their calculation and implementation lack evidence to support the achievement of their intended outcomes.
According to the article, these tariffs drive up the cost of industrial production, thereby undermining economic efficiency, diminishing the benefits of trade, and weakening competitiveness. The UNIDO warned that such policies will ultimately put jobs at risk around the world, affecting the most vulnerable countries the hardest.
The negative effects of escalating tariffs will affect not only already vulnerable countries but also the very countries implementing tariffs, exacerbating geopolitical tensions and uncertainty. Geopolitical tensions are expected to rise as countries struggle to adapt to the new trade landscape.
“Rather than erecting barriers to industrial trade, a fairer and sustainable global economy should be the goal,” said UNIDO Director General Gerd Mueller.
Mueller urged the United States and other industrialized countries to collaborate with developing countries to create win-win situations and build a fairer and more sustainable global economy that ensures long-term prosperity for all.
In its 2025 economic forecast published on Thursday, the World Trade Organis ation predicted a 0.2 percent decline in global trade, 2.9 percentage points less than the baseline, citing the impact of the U.S. tariffs and the uncertainty around future trade relations with the United States.
