The decision by the administration of US President Donald Trump to postpone the introduction of so-called reciprocal tariffs until August 1st prolongs the period of uncertainty and instability for countries. This was stated by Pamela Coke-Hamilton, executive director of the International Trade Center (ITC), a joint agency of the United Nations and the World Trade Organization, quoted by Reuters, BTA reports.
Trump has already announced that he will impose 25 percent tariffs on imports of goods from Japan, South Korea and other smaller US trading partners, starting August 1.
“This move effectively prolongs the period of uncertainty, undermines long-term investments and business contracts and creates additional instability“, Coke-Hamilton told journalists in Geneva.
She emphasized that in the absence of clarity about future costs, businesses cannot plan and invest effectively. She cited the African country of Lesotho as an example, where major textile exporters have frozen investments, awaiting a possible trade agreement.
Uncertainty over tariffs, combined with drastic cuts in development aid, is leading to a "double shock" for developing countries, she added.
After President Trump launched a global trade war in April, putting pressure on a number of countries to conclude trade agreements with the United States, global financial markets have been shaken, Reuters recalls.