US President Donald Trump’s decision to postpone the implementation of sweeping tariff increases on major trading partners has offered short-term relief but prolonged global trade uncertainty, the United Nations warned on Tuesday.
Just days before his “Liberation Day” tariffs were due to take full effect, Trump announced a three-week extension to allow more time for negotiations. Initially unveiled on April 2, the tariff plan imposed a 10 per cent baseline levy on imports from all countries. Higher tariffs were suspended until 9 July following financial market turbulence.
However, ahead of that deadline, Trump issued letters to over a dozen countries, including major partners like Japan and South Korea, outlining the tariffs they would face if they failed to reach deals by August 1.
Pamela Coke-Hamilton, director of the UN-backed International Trade Centre, told journalists in Geneva that the extension did not necessarily signal good news.
“Although the reciprocal tariffs won’t take effect tomorrow as planned and are now delayed until 1 August, this merely extends the period of uncertainty,” she said.
Coke-Hamilton warned that continued unpredictability risked undermining long-term investment, disrupting business contracts, and fuelling wider instability.
“Businesses need predictability more than anything else,” she stressed. “If the ground keeps shifting, it’s impossible to make firm decisions.”
‘Perfect Storm’ Brewing
Coke-Hamilton noted that the United States was not acting in isolation. “We’re seeing a broader trend,” she said. “Since the start of the year, we’ve tracked more than 150 new trade restrictions worldwide.”
She linked these developments to a wider decline in global trade following the Ukraine war, which had disrupted supply chains, created insecurity, and driven up commodity prices.
At the same time, she noted a dramatic fall in development aid and assistance spending. “We are witnessing the making of a perfect storm,” she cautioned.
Despite these challenges, she urged developing nations to take action to restore stability. She recommended investing in regional value chains, processing goods domestically before export to retain value, and empowering small businesses.
Coke-Hamilton also pointed to alternative markets, highlighting China’s recent offer of tariff-free access for African exports as a significant development. “That could shift global trade dynamics in ways we didn’t foresee just months ago,” she said.
She warned, however, that the US economy might ultimately suffer as a result of its own trade policies.
“In the long term, I believe this strategy will hurt the US economy,” she said. “I assume there’s a strategy behind it all—but right now, I can’t see how this leads to a positive outcome.”