Global trade grew by around $300 billion in the first half of the year due to US imports and EU exports, the United Nations said on Tuesday.
Despite the commercial war ignited by US president Donald Trump with his sweeping tariffs, global trade increased by around 1.7 per cent compared to the second half of 2024, UN Trade and Development economist Alessandro Nicita told AFP.
鈥楤ut persistent policy uncertainty, geopolitical tensions and signs of slowing global growth pose risks for trade in the second half of the year,鈥� UNCTAD said in a statement.
鈥楾he large increase for US imports was due to tariff front loading: US companies stockpiled goods before the tariffs went into effect on April 5,鈥� said Nicita.
Trade in services remained the 鈥榤ain engine鈥� of growth, the UNCTAD report said.
Global trade grew by about 1.5 per cent in the first quarter of 2025 and is expected to have accelerated to about two per cent in the second quarter.
鈥楧eveloped economies outpaced developing countries in the first quarter of 2025, reversing recent trends that had favoured the Global South,鈥� the report said.
鈥楾he shift was driven by a 14 per cent surge in United States imports and a six per cent jump in European Union exports.鈥�
However, imports dropped by two per cent in developing countries.
Trade imbalances, which Trump has cited as the reason behind his sweeping tariffs, 鈥榙eepened during the last four quarters, with the US posting a larger deficit and China and the European Union recording growing surpluses鈥�, the report said.
New US tariffs, including on steel and aluminium, 鈥榟ave raised the risk of trade fragmentation鈥�, the report said.
鈥楽till, signs of resilience remain鈥�, although those will depend on 鈥榩olicy clarity, geoeconomic developments and supply chain adaptability鈥�, UNCTAD said.
