'Inappropriate Strategy': UNIDO Cautions That U.S. Tariffs May Endanger Worldwide Expansion
On Friday, the United Nations Industrial Development Organization (UNIDO) released an article on its website, highlighting worries about the negative impacts of the recent tariff increases imposed by the United States on global economic development and industrial growth.
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On Friday, the United Nations Industrial Development Organization (UNIDO) released an article on its website, highlighting concerns regarding the detrimental impact of recent tariff increases by the United States on global economic development and industrial advancement.
UNIDO emphasized that the tariff increases "take the wrong approach," noting that their calculation and application are devoid of evidence to support the achievement of their desired outcomes.
The article indicated that these tariffs elevate the costs of industrial production, which undermines economic efficiency, reduces the benefits of trade, and weakens competitiveness. UNIDO cautioned that such policies pose a threat to jobs worldwide, with the most vulnerable countries likely to be the hardest hit.
Additionally, UNIDO warned that the repercussions of rising tariffs would affect not only disadvantaged nations but also the countries imposing them, further escalating geopolitical tensions and uncertainty.
"Rather than erecting barriers to industrial trade, a fairer and sustainable global economy should be the goal," stated UNIDO Director General Gerd Mueller.
Mueller called on the United States and other industrialized nations to work together with developing countries to foster win-win scenarios and promote a fairer, more sustainable global economy that guarantees long-term prosperity for all.
In its economic forecast for 2025, published on Thursday, the World Trade Organization projected a 0.2 percent decline in global trade, which is 2.9 percentage points below the baseline, attributing this to the effects of U.S. tariffs and the uncertainty surrounding future trade relations with the United States.
Frederick R Cook contributed to this article for TROIB News
UNIDO emphasized that the tariff increases "take the wrong approach," noting that their calculation and application are devoid of evidence to support the achievement of their desired outcomes.
The article indicated that these tariffs elevate the costs of industrial production, which undermines economic efficiency, reduces the benefits of trade, and weakens competitiveness. UNIDO cautioned that such policies pose a threat to jobs worldwide, with the most vulnerable countries likely to be the hardest hit.
Additionally, UNIDO warned that the repercussions of rising tariffs would affect not only disadvantaged nations but also the countries imposing them, further escalating geopolitical tensions and uncertainty.
"Rather than erecting barriers to industrial trade, a fairer and sustainable global economy should be the goal," stated UNIDO Director General Gerd Mueller.
Mueller called on the United States and other industrialized nations to work together with developing countries to foster win-win scenarios and promote a fairer, more sustainable global economy that guarantees long-term prosperity for all.
In its economic forecast for 2025, published on Thursday, the World Trade Organization projected a 0.2 percent decline in global trade, which is 2.9 percentage points below the baseline, attributing this to the effects of U.S. tariffs and the uncertainty surrounding future trade relations with the United States.
Frederick R Cook contributed to this article for TROIB News
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