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UNCTAD Warns Tariff Surge and Debt Burdens Are Stalling Development

Officials urged safeguarding WTO rules to counter uncertainty from U.S. tariff litigation.

Overview

  • At a UNCTAD gathering in Geneva, leaders said rising tariffs, record repayments and growing mistrust are forcing many countries to choose between servicing debt and funding development.
  • UNCTAD reported that applied tariffs by major economies have jumped this year from roughly 2.8 percent to more than 20 percent, dampening trade and investment.
  • Global investment flows are declining for a second straight year, with one‑off costs making projects far pricier in poorer economies, including a dollar going three times less far in Zambia than in Zurich.
  • UN officials noted that 72 percent of global trade still operates under WTO rules and called on members to uphold the rules‑based system to rebuild confidence.
  • The U.S. tariff program is under Supreme Court review, with oral arguments expected in November, extending policy uncertainty for trading partners and investors.