WASHINGTON (dpa-AFX) - A leading UN trade official has warned 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.
While the initial 90-day pause on so-called 'reciprocal' tariffs offered some relief compared to planned increases of up to 50 per cent, the U.S. 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 United States.
The tariff suspension, originally set to expire on July 9, has been extended until August 1, further prolonging uncertainty, Pamela Coke-Hamilton, Executive Director of the International Trade Centre (ITC), told reporters at a news briefing at the UN Office in Geneva.
She 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 United Nations-World Trade Organization (WTO) agency supporting businesses in developing countries.
'Economic uncertainty has real-world consequences on countries and sectors,' Coke-Hamilton said, citing the volatility in gold and precious metals flows as a case in point.
After the U.S. exempted those commodities from the new tariffs, trade volumes surged - with gold imports into Switzerland up 800 per cent year-on-year in May, based on U.S. import data.
Coke-Hamilton said that since the beginning of the year, ITC has tracked more than 150 new restrictive trade measures globally.
She noted that the least developed countries often face the steepest tariffs and the narrowest fiscal space to respond.
Lesotho, for instance, faces a 50 per cent tariff on apparel exports to the US, threatening its largest industry and tens of thousands of jobs. Viet Nam, though having negotiated a lower tariff, faces a 20 per cent levy. Double the current baseline rate, it will potentially reshape Vietnam's $937 million auto and auto-related trade with the U.S.
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