A meeting with 21 economies, including the US and China, highlighted concerns about a sharp economic slowdown due to trade tensions.
Impact of Trade Tensions
The Asia Pacific Economic Cooperation (APEC) warned on May 15 of the risk of their economies' growth slowing due to trade tensions and policy uncertainty, adversely affecting investments and trade. Growth is expected to drop from 3.6% last year to 2.6% in 2025.
Expert Opinions
Carlos Kuriyama, director of APEC’s Policy Support Unit, noted that uncertainty surrounding tariffs is weighing on business confidence, leading many firms to delay investments and product launches. He believes restoring confidence in trade requires easing tensions and measures such as strengthening supply chains and improving trade rule transparency.
US Trade Agreements with China and the UK
President Donald Trump reached new agreements with China and the UK, which involve reducing tariffs. The parties agreed to decrease tariffs from each nation by 115% by May 14 while retaining an additional 10% tariff. These agreements emphasize the importance of sustainable long-term economic relationships.
Trade tensions continue to exert a significant influence on the global economy. Sustainable cooperation and dialogue among nations are crucial for preventing further declines in growth rates.
