Global trade faces setback amid rising tariffs

April 16, 2025-The WTO Secretariat's latest Global Trade Outlook and Statistics report, issued today (16 April), comes at a time of growing uncertainty for the global economy- and with it, a sharp deterioration in the prospects for world trade.
Following a strong performance in 2024, global trade is now facing headwinds from a surge in tariffs and rising trade policy uncertainty.

The volume of world merchandise trade is projected to decline by 0.2 per cent in 2025- almost three percentage points lower than it would have been without the recent policy shifts. A modest recovery of 2.5 per cent is expected in 2026.

This marks a notable reversal from forecasts earlier this year, when WTO economists anticipated continued trade expansion, supported by improving macroeconomic conditions.

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