Impact of United States Trade Tariffs on Sustainable Development Goals

Economic Implications and Alignment with SDG 8: Decent Work and Economic Growth

Recent trade negotiations involving the United States have introduced economic pressures that directly impact the achievement of Sustainable Development Goal 8. The imposition of a 19% tariff on Thai exports is projected to disrupt economic stability and decent work opportunities.

• Reduced Export Competitiveness: The tariff is expected to decrease Thai exports to the U.S. by increasing costs, thereby threatening the livelihoods of workers within Thailand’s export-oriented sectors, particularly agriculture.
• Corporate Profitability: Major corporations are also affected, with Starbucks projected to experience a 1.4% reduction in profits, indicating wider economic consequences for stakeholders and employees.
• Strategic Market Diversification: In response, Thailand is pursuing a strategy to mitigate economic risks by developing new export markets. This initiative, focusing on high-potential regions such as Africa, aligns with SDG 8 by seeking to secure long-term, sustainable economic growth and create new trade partnerships.

Challenges to Food Security and SDG 2: Zero Hunger

The economic effects of trade policies are creating significant challenges to food affordability and security in the United States, a core tenet of SDG 2.

1. Consumer Stress from Food Prices: A survey by the Associated Press-NORC Center for Public Affairs Research revealed that 90% of American workers feel increased stress due to rising food costs.
2. Price Inflation on Staple Goods: Significant price increases have been observed for essential food items, including poultry, ground beef, and chicken eggs, directly impacting household budgets and access to nutritious food.
3. Disruption of Commodity Supply Chains: Tariffs on coffee imports from Brazil and Vietnam are anticipated to reduce consumption and shift consumer behavior towards alternatives, highlighting the vulnerability of global food supply chains to trade policy shocks.

Trade Policy Impacts on SDG 10 (Reduced Inequalities) and SDG 17 (Partnerships for the Goals)

The tariff measures underscore the complex relationship between international trade and the goals of reducing inequality and fostering global partnerships.

• Exacerbating Global Inequalities: The tariffs create an economic imbalance, favouring a small domestic group of producers, such as Hawaiian coffee farmers, at the expense of producers in developing nations and consumers globally. This dynamic runs counter to the objectives of SDG 10.
• Straining International Partnerships: While ongoing negotiations between the U.S., Thailand, and other nations signify a commitment to dialogue, the tariffs themselves represent a barrier to the collaborative spirit of SDG 17. The National Coffee Association’s appeal to reconsider the measure highlights the tension between national policy and the need for global cooperation on trade.

1. SDGs Addressed in the Article

• SDG 2: Zero Hunger

  This goal is relevant due to the article’s focus on rising food prices for staple items like poultry, beef, and eggs, which directly impacts food affordability and security for consumers. It also touches upon the livelihoods of agricultural producers, such as Thai exporters and Hawaiian coffee farmers, whose incomes are affected by trade policies.

• SDG 8: Decent Work and Economic Growth

  The article connects to SDG 8 by discussing international trade, economic policies (tariffs), and their impact on national economies and specific industries. The 19% tariff is a trade barrier that affects economic growth, exports, and corporate profits (e.g., Starbucks), while the stress felt by 90% of American workers due to rising costs links economic conditions to well-being.

• SDG 17: Partnerships for the Goals

  This goal is central to the article, which describes ongoing trade negotiations between Thailand and the US. It highlights the challenges in maintaining a stable and equitable global trading system, as tariffs disrupt international trade flows and affect the exports of developing countries like Thailand.

2. Specific SDG Targets Identified

• Target 2.c: Adopt measures to ensure the proper functioning of food commodity markets… in order to help limit extreme food price volatility.

  The article highlights the opposite of this target. The imposition of tariffs is a measure that disrupts food commodity markets (coffee, agricultural products) and leads to price volatility and “significant price hikes” for consumers in the US.

• Target 8.a: Increase Aid for Trade support for developing countries…

  While not directly about aid, this target’s spirit relates to strengthening the trade capacity of developing countries. The article discusses a measure (the 19% tariff) that hinders Thailand’s trade capacity and forces it to seek new markets in Africa to mitigate risk, underscoring the need for supportive trade environments.

• Target 17.11: Significantly increase the exports of developing countries…

  The article directly contradicts the aim of this target. It explicitly states that the “increased 19% tariff will reduce exports [from Thailand] to the US,” demonstrating a direct negative impact on the exports of a developing country.

3. Indicators Mentioned or Implied

• Value of Tariffs on Imports

  The “increased 19% tariff” is a specific, quantifiable indicator of a trade barrier that works against the principles of an open and equitable trading system (relevant to SDG 17).

• Food Price Inflation

  The mention of “significant price hikes” for poultry, ground beef, and chicken eggs serves as a qualitative indicator of food price volatility, which can be used to measure progress (or lack thereof) towards Target 2.c.

• Impact on Corporate Profits

  The projection that the tariff will “reduce Starbucks’ profits by 1.4%” is a specific financial indicator measuring the economic consequences of trade policies on businesses (relevant to SDG 8).

• Social Well-being and Stress Levels

  The survey finding that “90% of American workers feel increased stress due to rising food prices” acts as a social indicator, measuring the human impact of economic policies and price instability (relevant to SDG 8 and indirectly to SDG 3, Good Health and Well-being).

4. Summary Table of SDGs, Targets, and Indicators

Source: nationthailand.com