The United Nations Industrial Development Organization (UNIDO) has issued a stark warning against new U.S. tariffs, calling them a “wrong approach” that risks undermining global economic growth and industrial stability. In a Friday statement, the agency highlighted concerns over rising industrial production costs, reduced trade benefits, and weakened competitiveness tied to the measures.
UNIDO emphasized that tariff hikes lack evidence-based justification and could disproportionately harm vulnerable economies while also backfiring on nations implementing them. “These policies put jobs at risk worldwide and deepen geopolitical uncertainty,” the organization stated, urging industrialized countries to prioritize collaboration over protectionism.
Echoing this sentiment, UNIDO Director General Gerd Mueller called for a shift toward “fairer, sustainable global economic practices” through partnerships between developed and developing nations. The warning comes as the World Trade Organization revised its 2025 global trade forecast downward by 2.9 percentage points, citing tariff impacts and trade policy uncertainty.
Analysts suggest the developments could reshape supply chain strategies across Asia, where many export-driven economies remain vulnerable to trade fluctuations. Business leaders and policymakers are now weighing the long-term implications for regional markets and international cooperation frameworks.
