The World Trade Organization (WTO) said in a study on Monday that import tariffs typically disproportionately affect low-income consumers, presumably in response to growing protectionism and pushback against open markets.

The 2024 World Trade Report, according to WTO Director-General Ngozi Okonjo-Iweala, “contrary to the currently fashionable notion” that trade is making the world more unequal, underlined trade’s role in eliminating poverty and sharing prosperity.

According to a WTO analysis, women, low-income households, and smaller businesses that may find it difficult to absorb higher fixed costs of trade are frequently disproportionately affected by trade restrictions on a global scale.

While Canada has matched the US EV rate and the European Union has imposed its own EV taxes, the United States is about to increase tariffs on a variety of Chinese imports, including a quadrupling of the rate for electric vehicles.

Chinese probes into EU imports of canola from Canada and dairy, pig, and brandy have been China’s response. 

Donald Trump, the front-runner for the US presidency, has suggested imposing a 10% tariff on all imports, with charges going up for goods coming from China.

According to the WTO assessment, higher tariffs generally impose a higher cost on low-income households. 

Poorer households profit from the majority of consumer products delivered to low-income regions in the United States from China, which are now free from import duties.

According to WTO data, a greater share of imports from high-income economies are reportedly eaten by affluent customers.

Even in cases where a sector does not require protection, tariffs are politically difficult to eliminate, hence securing higher pricing.

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