Latest news with #Coke-Hamilton
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
Tariff delay deepens economic uncertainty, warns ITC chief
The extension of the US tariff pause until August 1, 2025, has sparked renewed concerns over global trade instability, with Pamela Coke-Hamilton, executive director of the International Trade Centre (ITC), warning that the move deepens economic uncertainty and threatens long-term investment and trade contracts—particularly in developing nations. Speaking at a public forum, Coke-Hamilton criticised the US decision to delay the imposition of steep reciprocal tariffs, noting that while the pause temporarily shields developing countries from the harshest rates—ranging from 40 to 50 per cent in some cases—it comes at the cost of strategic clarity. The US tariff pause extension to August 1, 2025, has intensified trade uncertainty, particularly for developing nations. ITC head Pamela Coke-Hamilton warned it undermines investment and disrupts contracts, with layered duties harming exporters. Over 150 new trade barriers, a 28 per cent cut in G7 aid, and new tariffs on BRICS-aligned nations add to instability. 'This move extends the period of uncertainty, undermining long-term investment and business contracts, creating further instability,' she said. Coke-Hamilton highlighted that although the current 10 per cent levy is less punitive than the proposed reciprocal rates, it remains an additional cost on top of existing duties. This layered burden disproportionately affects low-income exporters in apparel and agriculture. The broader impact of restrictive trade policies is evident in the over 150 new trade barriers tracked globally in 2025 alone, exacerbating the downturn that began with the Ukraine war and rising geopolitical friction. Developing nations are hit hardest. Lesotho, for instance, faces a looming 50 per cent tariff on apparel exports—jeopardising duty-free benefits under the African Growth and Opportunity Act and endangering tens of thousands of jobs. Vietnam, despite negotiating a lower rate, now faces a 20 per cent tariff—double the temporary 10 per cent base and still a major hurdle for its nearly $1 billion auto sector exports to the US. Further complexity emerged over the weekend with the announcement of an additional 10 per cent tariff on countries aligning with certain BRICS policies, a move seen as further targeting the Global South. To compound the trade disruption, G7 countries are projected to slash development aid by 28 per cent in 2025—the steepest cut since the bloc's founding. 'A perfect storm is brewing,' Coke-Hamilton warned, 'just as trade becomes more unpredictable, external support through aid is also shrinking'. However, she outlined three strategies for developing nations to regain stability: investing in regional value chains—such as through the African Continental Free Trade Area (AfCFTA); focusing on value-added manufacturing to reduce commodity dependence; and elevating the small business agenda, which will be central to the Global SME Ministerial Meeting in Johannesburg on July 22-24. 'The path forward for developing economies lies in cooperation, innovation, and a renewed focus on inclusive trade,' she concluded. Fibre2Fashion News Desk (KD)
The Star
08-07-2025
- Business
- The Star
UN trade official warns U.S. tariff policy extends global uncertainty
GENEVA, July 8 (Xinhua) -- A leading United Nations economist has warned that the U.S. decision to extend its "reciprocal tariffs" pause from July 9 to Aug. 1 actually prolonged the period of uncertainty, undermining long-term investment and business contracts, and creating further uncertainty and instability. Pamela Coke-Hamilton, executive director of the International Trade Centre (ITC), told a press conference on Tuesday that the prolonged uncertainty is having "real-world consequences," particularly for the world's least developed countries. Such countries as Lesotho, Laos, Madagascar, and Myanmar are set to face levies between 40 percent and 50 percent, she added. She also highlighted what she described as a "dual shock" for developing nations, increasing tariff uncertainty combined with shrinking development aid. According to data cited from Oxfam, G7 countries, responsible for roughly 75 percent of all official development assistance, are expected to cut their aid spending by 28 percent in 2025 compared to 2024. This would mark the largest reduction since the G7's formation 50 years ago. "In short, in today's context, a perfect storm is brewing -- just as trade becomes more unpredictable, external support through aid is also shrinking," said Coke-Hamilton. When asked about the implications for the U.S. economy, she said the long-term strategy remains unclear, but warned of potential negative impacts down the line. In contrast, Coke-Hamilton praised China's recent announcement of full tariff-free access for African countries with diplomatic ties, calling it a "major development."
Time of India
08-07-2025
- Business
- Time of India
Trump's tariff pause offers little relief, UN says, warning of global trade instability
US President Donald Trump's decision to delay implementing major tariff hikes on most trading partners may have offered some relief, but the extension is also prolonging global trade uncertainty , the UN warned Tuesday. Days before the three-month pause on his "Liberation Day" tariffs was set to expire, the US president said Monday he would give trading partners an extra three weeks to hammer out deals to avoid paying sky-high levies for their exports to the world's biggest economy. Trump had unveiled sweeping tariffs on imports on April 2, including a baseline 10 percent tariff on all countries, but following market turmoil he quickly suspended tariffs above 10 percent until July 9. But prior to that deadline, he sent out letters to more than a dozen countries -- including top trading partners Japan and South Korea -- setting out what he had decided to charge if they did not reach agreements by a new August 1 target date. Pamela Coke-Hamilton , director of the United Nations-backed International Trade Centre , told reporters in Geneva that the extension was not necessarily good news. Live Events "While the reciprocal tariffs will no longer go into effect tomorrow as originally announced, but be (postponed) for another few weeks until first of August, this move actually extends the period of uncertainty," she said. That in turn risks "undermining long-term investment and business contracts and creating further uncertainty and instability". Predictability, she said, is the "one thing businesses need more than anything else". "If the sand keeps shifting, there's no way that you can make firm decisions for your business." 'Perfect storm' Coke-Hamilton stressed that the United States was not the only country piling on new trade restrictions. "These changes in the trade landscape are part of a bigger trend," she said, pointing out that since the start of the year, her agency has "tracked more than 150 restricted trade measures that have been introduced globally". "These measures layered on top of a general decline in world trade since the onset of the war in the Ukraine, with its related supply-chain disruptions, insecurity and rising commodity prices have put strains on all economies." At the same time, spending on development assistance and aid has fallen off a cliff. "In today's context, a perfect storm is brewing," Coke-Hamilton said. While the global trade uncertainty and the US tariffs were clearly taking their toll on developing countries, she said there were actions they could take "to restore a sense of stability and predictability, and even find new opportunities to grow". Those included focusing more on strengthening regional value chains and striving to process goods in-country before export to retain more value, as well as boosting their small businesses. She also highlighted that markets besides the United States could become more attractive, pointing to China's recent announcement that it would give African countries tariff-free access to its market. "That is a major, major, major development, and it can swing things in a way that was not anticipated three months ago," she said. Coke-Hamilton cautioned though that the United States itself might suffer from the tariff turmoil. "I think in the long run, it will have a negative impact on the US economy," she said. "I'm not clear on what the plan is... I presume there is one. But from my perspective, at this point, I don't see a win here in the long term."
