Global Merchandise Trade Faces Uncertain Future Amid Tariffs

Global merchandise trade is set to grow by 0.9% this year, hindered by U.S. tariffs. WTO forecasts suggest continued uncertainty affecting business confidence. Asian economies remain strong contributors, while North America may negatively impact growth. Indian exports stayed stagnant in June, despite a declining trade deficit.

Global merchandise trade is anticipated to increase by 0.9% this year, influenced by the U.S. frontloading imports due to extensive tariffs under President Trump's administration, according to a World Trade Organization (WTO) report.

The WTO warns of higher tariffs affecting trade, predicting a drop in next year's trade volume growth to 1.8% from an initially projected 2.5%.

WTO Director-General Ngozi Okonjo-Iweala highlights the continuing impact of tariff-related uncertainty on business confidence, investment, and supply chains, emphasizing its disruptive nature in the global trading environment.

(With inputs from agencies.)