UNIDO criticises U.S. tariff hikes, calling for worldwide cooperation

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.

Moreover, it cautioned that 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.

"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 industrialised 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 Organisation predicted a 0.2 per cent decline in global trade, 2.9 percentage points less than the baseline, citing the impact of the US tariffs and the uncertainty around future trade relations with the United States.

--BERNAMA-XINHUA