The Trump administration’s decision to extend the tariff negotiation deadline to August 1 is worsening instability, the UN’s trade agency warned Tuesday.
President Trump announced higher tariffs on 14 countries—including Japan, South Korea, and smaller economies—escalating the trade war that began in April.
“This move prolongs uncertainty, disrupts investment decisions, and undermines business contracts,” said Pamela Coke-Hamilton, head of the International Trade Centre.
She noted that in places like Lesotho, textile firms have frozen investments while awaiting clarity on tariff costs. The combination of trade uncertainty and cuts in development aid is delivering a “dual shock” to developing nations.
Many countries now face mounting pressure to finalize trade agreements to protect their economies.