U.S. Tariffs Crush Developing Countries’ Trade
(MENAFN) The International Trade Centre (ITC) executive director underscored on Tuesday the escalating repercussions of U.S. trade policies on developing economies, now 90 days after Washington temporarily halted its planned "reciprocal" tariffs.
Pamela Coke-Hamilton, speaking at a Geneva press briefing, explained that although the pause provided some short-term relief, the existing 10% tariff was added on top of prior duties. This increase has forced many developing countries to absorb higher export costs for products such as apparel and agricultural goods entering the U.S. market.
While the scheduled reinstatement of reciprocal tariffs was delayed until August 1, Coke-Hamilton emphasized that the extended uncertainty continues to hinder long-term investment decisions and disrupt established business agreements.
Highlighting the tangible impacts of this ambiguity, she stated, "economic uncertainty has real-world consequences," with the greatest strain felt by the world’s least developed countries.
Specifically, she pointed to Lesotho, which faces a punitive 50% tariff that overrides the duty-free benefits of the African Growth and Opportunity Act. This measure threatens up to tens of thousands of jobs, she warned.
Using Vietnam as another example, she noted that although the country negotiated down a 46% tariff to 20%, this remains “double the current 10%,” signaling ongoing pressure on critical trade partners.
“The newly agreed-upon tariff could reshape trade between the two countries,” Coke-Hamilton added.
She further expressed alarm over a weekend announcement imposing an additional 10% tariff on nations aligned with certain BRICS policies. This move fits within a broader wave of over 150 restrictive trade actions imposed globally since January.
Simultaneously, she revealed projections showing that development aid from G7 countries is expected to shrink by 28% in the coming year.
“In short, in today’s context, a 'perfect storm' is brewing," she concluded.
To navigate these challenges, she urged nations to boost regional trade collaboration, focus investments on value-added sectors, and “make the small business agenda a political one.”
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