Developing Nations Face Strain from US Tariffs
(MENAFN) On Tuesday, the head of the International Trade Centre (ITC) drew attention to the escalating consequences of American trade actions on emerging economies, marking 90 days since the United States delayed its proposed "reciprocal" tariffs.
Pamela Coke-Hamilton explained during a media briefing in Geneva that "while the pause offered some relief compared to the reciprocal tariffs," a 10% surcharge was still added to pre-existing trade duties.
This led to increased export costs for numerous nations—primarily low- and middle-income economies—trying to ship goods such as clothing and food items to the US.
Although the anticipated reciprocal tariffs were supposed to be reintroduced this week, the US government deferred the move until August 1.
Nevertheless, Coke-Hamilton emphasized that this delay "extends the period of uncertainty," which disrupts long-term investments and commercial deals, contributing to heightened instability in global markets.
She stressed that "economic uncertainty has real-world consequences," noting that the harshest effects are experienced by the world’s poorest nations.
She pointed out that "Lesotho… is set to face a 50% tariff," which effectively cancels out its prior duty-free privileges under the African Growth and Opportunity Act.
The new trade conditions, she warned, could jeopardize “up to tens of thousands of jobs.”
Coke-Hamilton also used Vietnam as a case in point. Although the country successfully negotiated its tariff down to 20 percent—significantly less than the initially proposed 46 percent —she noted that it is still "double the current 10%," indicating sustained pressure on vital trading allies.
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