11 hours ago
- Business
- New Straits Times
World goods trade rebounds in early 2025 in anticipation of US tariffs
MOSCOW: World goods trade increased sharply in early 2025 in anticipation of US tariffs, but weakening export orders suggest the momentum may not be sustained, the World Trade Organisation (WTO) Goods Trade Barometer showed, reported Sputnik/RIA Novosti.
The WTO Goods Trade Barometer is a leading indicator of world trade that provides real-time information on the dynamics of goods trade in line with recent trends. Barometer readings above 100 are associated with above-trend trade volumes, while barometer readings below 100 suggest that merchandise trade has fallen below trend or will fall in the near future.
"Global goods trade posted a strong uptick in early 2025 driven by importers frontloading purchases ahead of anticipated higher tariffs; however, weakening export orders suggest that this momentum may not be sustained.
"The latest WTO Goods Trade Barometer rose to 103.5 — up from 102.8 in March, while the forward-looking new export orders index fell to 97.9, pointing to weaker trade growth later in the year," the organisation said on Thursday.
On April 2, US President Donald Trump signed an executive order that implemented reciprocal tariffs on imports from various countries. The base tariff rate was established at 10 per cent, with higher rates applied to 57 countries based on the US trade deficit with each specific nation. On April 9, Trump declared that a baseline tariff of 10 per cent would be imposed for 90 days on over 75 countries that had not retaliated and had requested negotiations.
