New tariffs imposed by the U.S. President have been much in the news in 2025. What has been less reported is how tarrifs more severely affect the poorest nations, with some facing tariffs as high as 40%. These high tariffs may cripple poorest nations’ export industries and lead to significant economic and human costs. New American tariffs on poorer nations are 2-5 times higher than those placed on wealthier countries, potentially reversing decades of poverty reduction through trade.
Countries like Vietnam, Bangladesh, South Africa, and Iraq now confront tariffs of 20% or more. Poorer nations such as Laos are subjected to tariffs as high as 40%. Burma which is recovering from a devastating earthquake, was hit with a 45% duty. These countries have economies that are heavily reliant on a few key export sectors, such as textiles, garments, or agricultural products. A high tariff on these goods can have a devastating effect on their entire economy, leading to job losses and a decline in national income.
U.S. tariff rates now on Cambodia are 49%, on Angola 32%, on Mozambique 47%, on Syria 41%, on India 50%. This represents a regressive policy shift that will un-develop countries, worsten debt crises and lead to higher unemployment.
The U.S. President has demanded in recent months that trading partners invest in the U.S., but few developing countries have anything near the finance to match the hundreds of billions of dollars that Japan, South Korea and the EU have pledged to sink into the American economy.
Wealthier nations generally have more diversified economies and greater resources to negotiate with the U.S. or to find new markets for their goods. In some cases, they have been able to reach agreements that result in lower tariff rates than initially threatened. As seen in the chart at right, U.S. tariffs are lower for wealthier countries and higher for lower-income populations.
UNCTAD estimates that developing countries could see export losses of up to 15-20% to the U.S., worsening poverty and growth prospects. Wealthier nations, with diversified economies and stronger bargaining power, have secured exemptions or lower rates through “mini-deals,” mitigating impacts. For instance, the EU’s rate is 15% for most goods, reflecting pre-existing low mutual tariffs (around 1.4% average before 2025).
