Latest news with #PamelaCoke-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."
