Trade Policy Uncertainty Clouds Global Commerce Outlook

The World Trade Organisation warns that increased trade policy uncertainty and potential new tariffs could impact global trade growth. Despite stability in late 2024, the medium-term outlook is threatened by recent tariff announcements from the US and retaliatory measures from China and Canada.

The World Trade Organisation (WTO) has raised concerns about the impact of increased trade policy uncertainty and potential new tariffs on global commerce. This warning comes amid a global trade landscape that appears steady, at least for now.

According to the WTO's Goods Trade Barometer, global goods trade showed stable growth in the final quarter of 2024 and is expected to see continued expansion into early 2025. Despite this positive short-term projection, the organisation warns that unresolved trade disputes could derail this growth.

US President Donald Trump has recently introduced new tariffs targeting countries such as China and Canada, which have responded with their own tariffs. This escalating situation points to an intensifying trade war that could pose significant risks to global economic stability.

(With inputs from agencies.)