10 poor countries paying the price for Donald Trump's tariff hikes

FILE PHOTO: U.S. President Trump delivers remarks on tariffs, at the White House
FILE PHOTO: U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025. REUTERS/Carlos Barria/File Photo
Source: REUTERS

In a sweeping move, President Donald Trump has extended his trade war to include some of the world’s poorest and least economically significant nations, many of which rely on U.S. markets to sustain key industries.

The newly imposed tariffs, described by the White House as “reciprocal” and a response to “unrelenting economic warfare,” have already caused panic in several developing economies that were previously sheltered under U.S. trade programs like the African Growth and Opportunity Act (AGOA).

Among those hit hardest is Lesotho, a small, landlocked “mountain kingdom” in southern Africa, known for its thriving textile sector. Once dubbed the “denim capital of Africa,” Lesotho exported over $235 million in goods to the U.S. in 2024, employing 30,000 people directly. But under Trump’s new tariff plan, those exports including denim for global brands like Levi’s and Wrangler now face a punitive 50% duty.

“This 50 percent tariff means we might lose the whole textile industry,” said Thabo Qeshi, head of Lesotho’s main business chamber. “Union workers, business people, transport workers everyone is panicking.”

Lesotho isn’t alone. The tariff list includes a mix of small island nations and developing economies, many with negligible trade surpluses but symbolic value in Trump’s “America First” narrative. Below, we examine how some of the world’s poorest nations measured by GDP per capita using data provided by the International Monetary Fund—are being drawn into an economic confrontation they never sought.

The world’s poorest nations and their U.S. trade fate

1. Burundi

GDP per capita (2025): $157

Main exports to U.S.: Coffee, tea

Tariff impact: Now faces 10% tariffs.

2. South Sudan

GDP per capita (2025): $334

Main exports to U.S.: Oil

Tariff impact: 10% tariffs. Any trade restrictions could disrupt a fragile post-conflict economy.

3. Malawi

GDP per capita (2025): $448

Main exports to U.S.: Tobacco, tea, sugar

Tariff impact: Malawi now faces 17% tariffs.

4. Central African Republic

GDP per capita (2025): $549

Main exports to U.S.: Diamonds, timber

Tariff impact: 10% tariffs

5. Madagascar

GDP per capita (2025): $576

Main exports to U.S.: Vanilla, textiles, nickel

Tariff impact: Although recovering from a recent cyclone, Madagascar’s exports now face 47% tariffs.

6. Yemen

GDP per capita (2025): $455

Main exports to U.S.: Coffee, oil

Tariff impact: 10% tariffs

7. Mozambique

GDP per capita (2025): $685

Main exports to U.S.: Aluminum, agricultural goods

Tariff impact: 16% tariffs; the country is heavily reliant on AGOA preferences for trade.

8. Niger

GDP per capita (2025): $752

Main exports to U.S.: Uranium, Precious stones

Tariff impact: 10% and uranium may become strategically contentious.

9. Democratic Republic of the Congo (DRC)

GDP per capita (2025): $744

Main exports to U.S.: Cobalt, copper, minerals vital to tech manufacturing

Tariff impact: 10% tariffs and can become a geopolitical flashpoint given DRC’s importance in the global battery supply chain.

10. Lesotho

GDP per capita (2025): $1,107

Main exports to U.S.: Denim, textiles

Tariff impact: Now subject to 50% tariff effectively nullifying the trade benefits it received under AGOA.

A trade policy without logic?

Ha-Joon Chang, an economist at SOAS University of London, called the methodology “bizarre,” citing erratic calculations that seem more driven by political vendettas than economic rationale.

“These aren’t trade surpluses that pose a threat to American industry,” said Chang. “Some of these nations don’t even export more than a few million dollars worth of goods. This is more about symbolism.”

Countries like Nauru, which exported just $1.16 million in goods to the U.S. last year, now face a 30% tariff. Meanwhile, Myanmar, still reeling from a catastrophic earthquake, saw its exports slapped with a 45% duty.

Some nations, like Vatican City and Monaco, escaped with a baseline 10% tariff, despite having larger per capita GDPs. This selective enforcement has led many to question the real motives behind the trade war’s latest front.

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