U.N. trade official warns of global instability as Trump extends tariff deadline
The Trump administration’s decision to extend a deadline for imposing higher tariff rates is fueling uncertainty and threatening the economic stability of both major and developing economies, a top United Nations trade official warned Tuesday.
Speaking in Geneva, Pamela Coke-Hamilton, Executive Director of the International Trade Centre (ITC), criticized the extension as a destabilizing move that prolongs a climate of unpredictability, News.Az reports, citing Reuters.
“This move actually extends the period of uncertainty, undermining long-term investment and business contracts,” she told reporters. “If a business is not clear on what costs they are going to pay, they cannot plan, they cannot decide on who will invest.”
U.S. President Donald Trump on Monday escalated his trade war by informing 14 countries, ranging from key economic allies like Japan and South Korea to smaller trade partners, that they now face significantly higher tariffs if new agreements are not reached by August 1.
The decision follows months of tension after Trump launched a global trade offensive in April, sending shockwaves through financial markets and pushing governments to rush for new trade strategies.
Coke-Hamilton said developing nations are already bearing the brunt of the fallout. She pointed to Lesotho as a case study, where textile manufacturers have frozen investments, waiting to see how tariffs will unfold. "The uncertainty, combined with deep cuts in development aid, has created a dual shock for vulnerable economies," she added.
The International Trade Centre, a joint agency of the United Nations and the World Trade Organization, has called for greater transparency and predictability in global trade policy. Without it, Coke-Hamilton warned, the ripple effects could stifle global growth and deepen inequalities.
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