By Anjali Sharma
UNITED NATIONS – Pamela Coke-Hamilton, Executive Director of the International Trade Centre on Wednesday warned at a regular news briefing in Geneva that the United States’ decision to delay the end of a tariff suspension by a few weeks risks prolonging global uncertainty and undermining long-term investments and commercial contracts.
She said that the initial 90-day pause on so-called “reciprocal” tariffs offered some relief compared to planned increases of up to 50 per cent, the US imposed a 10 per cent baseline tariff instead, added on top of existing duties.
This means many countries especially developing economies faced higher costs exporting goods to the US, Ms. Pamela Coke-Hamilton stated.
She said that the tariff suspension, originally set to expire soon, has now been extended until August 1, prolonging uncertainty.
Pamela Coke-Hamilton warned this move adds to a mounting “dual shock” of rising trade restrictions and deep cuts to development aid, which hit developing countries the hardest.
ITC is a joint UN World Trade Organization agency supporting businesses in developing countries.
“Economic uncertainty has real-world consequences on countries and sectors,” Ms. Coke-Hamilton said.
She cited the volatility in gold and precious metals flows as a case in point.
US import data showed that the US exempted those commodities from the new tariffs, trade volumes surged with gold imports into Switzerland up 800 per cent year-on-year in May.
Ms. Coke-Hamilton said that since the beginning of the year, ITC has tracked more than 150 new restrictive trade measures globally.
She noted that layered onto existing global trade disruptions since the start of the war in Ukraine, the resulting strain has disproportionately impacted least developed countries which often face the steepest tariffs and the narrowest fiscal space to respond.
Lesotho faces a 50 per cent tariff on apparel exports to the US, threatening its largest industry and tens of thousands of jobs, she noted.
Viet Nam have negotiated a lower tariff, faces a 20 per cent levy – double the current baseline rate – potentially reshaping its $937 million auto and auto-related trade with the US.
Ms. Coke-Hamilton voiced concerns over cuts in development financing, noted that G7 countries are projected to reduce aid spending by 28 per cent next year – the largest drop in five decades.
“A perfect storm is brewing – just as trade becomes more unpredictable, external support through aid is also shrinking,” she said.
She urged developing countries to focus on three strategic responses: strengthening regional value chains, investing in value addition to reduce commodity dependence and prioritizing small business resilience.
“Stability can come from the ground up,” she added.
Pamela Coke-Hamilton concluded that uncertainties lie ahead in both the trade and aid landscapes, developing countries can still find ways not only to navigate these challenges, but to take on an active role in bringing about greater stability.”
