GENEVA, (Pakistan Point News - 08th Jul, 2025) Pamela Coke-Hamilton, Executive Director of the International Trade Centre (ITC), has warned of a "perfect storm" brewing on the horizon for developing countries, driven by a dual shock of global trade volatility and sharp cuts to development aid.
Speaking at a press conference in Geneva today, Coke-Hamilton said that the decision to extend the suspension of reciprocal US tariffs until 1st August has further deepened the uncertainty undermining long-term investment and damaging business sectors, particularly in developing economies.
She highlighted that the least developed countries are among the hardest hit, with nations such as Lesotho facing tariffs of up to 50 percent on their exports to the United States — a threat to key industries and tens of thousands of jobs. Even countries that have renegotiated tariff terms, such as Vietnam, still face doubled rates that could reshape regional trade flows.
As an example of trade volatility, Coke-Hamilton pointed to dramatic fluctuations in gold trade between Switzerland and the US, noting that Swiss imports surged by 800 percent in May following the announcement of exemptions for precious metals.
This turbulent trade landscape comes as G7 countries prepare to slash development aid spending by 28 percent next year — the largest cut in the group’s history — at a time when developing economies are in dire need of external support.
To mitigate the impact, Coke-Hamilton urged developing nations to strengthen regional trade ties as a first step toward restoring economic stability.
