Extended tariff pause adds instability, with highest burdens falling on least developed nations, says Pamela Coke-Hamilton
GENEVA — The executive director of the International Trade Centre (ITC) on Tuesday highlighted the deepening impact of US trade measures on developing countries, 90 days after Washington paused its planned “reciprocal” tariffs.
“While the pause offered some relief compared to the reciprocal tariffs, the 10% levy was added to existing duties, meaning countries – mostly developing countries – faced higher costs to export goods like apparel and agricultural products to the US,” Pamela Coke-Hamilton said at a press briefing in Geneva.
Although the reciprocal tariffs set to resume this week were postponed until Aug. 1, the move “extends the period of uncertainty, undermining long-term investment and business contracts, creating further uncertainty,” she added.
Coke-Hamilton warned that “economic uncertainty has real-world consequences,” with the highest burdens falling on least developed countries.
“Lesotho… is set to face a 50% tariff, overriding the duty-free access provided by the African Growth and Opportunity Act,” she said, adding that the measure put “up to tens of thousands of jobs” at risk.
Coke-Hamilton cited Vietnam’s negotiated 20% tariff—lower than the initial 46% but still “double the current 10%” – as an example of continued pressure on key trade partners.
“The newly agreed-upon tariff could reshape trade between the two countries.”
She also raised concerns over weekend announcements of an extra 10% tariff on countries aligning with certain BRICS policies, calling it part of a broader trend of over 150 restrictive trade measures globally since January.
At the same time, G7 countries are projected to cut development aid by 28% next year.
“In short, in today’s context, a ‘perfect storm’ is brewing,” she said.
To counter this, she urged countries to strengthen regional trade, invest in value-added industries, and “make the small business agenda a political one.” — AA
