US tariff uncertainty deepens trade strain on developing countries: International Trade Center chief

"While the pause offered some relief compared to the reciprocal tariffs, the 10% levy was added to existing duties, meaning countries – mostly developing countries – faced higher costs to export goods like apparel and agricultural products to the US," Pamela Coke-Hamilton said at a press briefing in Geneva.

Although the reciprocal tariffs set to resume this week were postponed until Aug. 1, the move "extends the period of uncertainty, undermining long-term investment and business contracts, creating further uncertainty," she added.

Coke-Hamilton warned that "economic uncertainty has real-world consequences," with the highest burdens falling on least developed countries.

"Lesotho… is set to face a 50% tariff, overriding the duty-free access provided by the African Growth and Opportunity Act," she said, adding that the measure put “up to tens of thousands of jobs” at risk.

Coke-Hamilton cited Vietnam's negotiated 20% tariff—lower than the initial 46% but still "double the current 10%" – as an example of continued pressure on key trade partners.

"The newly agreed-upon tariff could reshape trade between the two countries."

She also raised concerns over weekend announcements of an extra 10% tariff on countries aligning with certain BRICS policies, calling it part of a broader trend of over 150 restrictive trade measures globally since January.

At the same time, G7 countries are projected to cut development aid by 28% next year.

"In short, in today’s context, a 'perfect storm' is brewing," she said.

To counter this, she urged countries to strengthen regional trade, invest in value-added industries, and "make the small business agenda a political one."