New Tariffs Set to Disrupt Global Trade Landscape

HSBC Research warns that new tariffs imposed by the US could significantly slow global trade. World export growth is projected to decline from 2.9% in 2024 to 1.3% in 2025-26, primarily due to reduced US demand and global uncertainty. Key economies face steep tariffs, fueling economic caution worldwide.

HSBC Research has raised alarms over the new tariffs imposed by US President Donald Trump, which are expected to greatly hinder global trade dynamics. A recent report projects a steep decline in world export volume, dropping from 2.9% in 2024 to a mere 1.3% for the years 2025-2026. This downturn is attributed to a reduction in US demand and heightened global uncertainties impacting investment and confidence.

The report elaborates that this slowdown in trade follows Trump's earlier tenure, which saw global GDP shrink by 1% due to similar tensions. However, the current tariffs are broader and expected to have a larger impact. While the exact global consequences remain uncertain, temporary reliefs and deals might alleviate some effects.

Set to commence on April 9, these tariffs notably affect economies like China, Vietnam, Taiwan, and India, with mainland China facing over 50% tariffs on imports. With financial markets already reacting to the uncertainty, global players are keeping a keen eye on the unfolding trade dynamics as Asian exporters express concern over potential disruptions.

(With inputs from agencies.)