According to UNCTAD Secretary-General Rebeca Grynspan, ongoing tariff uncertainty could slow investment, particularly affecting:
- Small and medium-sized enterprises (SMEs)
- Small countries and developing economies dependent on trade and investment for growth
Key insights:
- While AI-driven trade and investment has surged this year, its benefits remain concentrated and largely exclude smaller nations.
- Global FDI fell for a second consecutive year in 2024, with 2025–2026 forecasts hinging on trade tensions and potential tariff hikes.
- Least developed countries in Africa and small island states face higher tariffs, reducing resilience amid uncertainty.
- The EU deal limits duties to 15% for most goods exported to the U.S., but some countries like Laos still face tariffs up to 40%.
Grynspan urged that vulnerable countries be spared higher tariffs to protect growth and investment.