Global trade experienced significant growth last year, a stark contrast to the over 1 percent decline seen the previous year. Unfortunately, this trend did not extend to the Eurozone, which saw both imports and exports contract. According to the World Trade Monitor, there was notable trade growth in emerging economies in Southeast Asia and Latin America. China significantly boosted its exports of electric vehicles, batteries, and solar panels, while the United States also saw an increase in its export figures.
For Europe, the news is less favorable. The Eurozone’s imports and exports both decreased, with the weakening European industry highlighted by the struggling German automotive sector. This sector faces stiff competition from China, which is becoming a dominant auto exporter. The United Kingdom also saw a clear decline in exports.
The looming threat of import tariffs announced by U.S. President Donald Trump adds further uncertainty. However, the believes that these higher tariffs on foreign goods will have a limited impact on global trade volumes. Instead, shifts are expected in the trade dynamics between countries. Trump’s tariffs are likely to hurt the U.S. initially, as exports to the U.S. may decrease, while exporting to the EU could become more attractive. The analysis suggests that while global trade is on the rise, the Eurozone must navigate its challenges to regain a foothold in the competitive global market.