This post was originally published on The Economic Times
Global merchandise trade slowed last quarter as the boost seen earlier this year from front-loading of orders ahead of US tariffs faded, the World Trade Organization said.
The WTO’s goods barometer dropped to 101.8 in September from 102.2 for June, the Geneva-based organization said on Friday. The baseline of 100 indicates growth over the next quarter that’s in line with medium-term trends.
The data for air freight and container shipping “continue to signal expansion,” even as they weakened from June, “indicating a cooling-off in the transportation of goods worldwide,” the report said. The barometer’s automotive and electronics indexes stabilized and agriculture stayed in contraction, while new export orders showed improvement.
“On balance, the indices show signs of moderation in global trade growth,” the WTO said.
US President Donald Trump’s tariffs of 10% or higher on imports from most major trading partners disrupted international commerce through much of the year, spurring many American importers to front-load orders to avoid paying the import taxes, as well as shifting demand away from markets where the duties are the highest.
US goods imports from China, for instance, sank 22% through August this year, but year-to-date shipments from markets including
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