Global Trade Tensions Reshape Economic Landscape: Terms of Trade in Flux

As geopolitical tensions escalate, the global trade outlook for 2025 is undergoing a dramatic shift. World merchandise trade volume is projected to grow by 3.3% in 2025, rebounding from a -1.2% decline in 2023. However, this recovery faces significant headwinds as the U.S.-China trade war intensifies. China has defiantly set a 5% growth target for 2025, despite facing new U.S. tariffs. Meanwhile, India's Terms of Trade are expected to reach 97.70 points by the end of 2025. These developments signal a new era of economic realignment, with nations scrambling to adapt to changing trade dynamics and protect their interests in an increasingly fragmented global market.

 

Sources: World Trade Organization, CNN, Trading Economics, Associated Press