International manufacturing trade slowed down worldwide, the World Trade Organization (WTO) reported in a report.
At year-on-year rates and in value terms, these flows went from 15% growth in both the fourth quarter of 2021 and the first quarter of 2022 to 10% in the second quarter of 2022.
The fact that merchandise trade values are growing at double-digit rates, while trade growth in volume terms remains in single digits, indicates strong increases in the prices of traded goods.
Year-on-year growth in world merchandise exports through 2022Q2
Considering products across all sectors, world trade also registered a slower pace, falling from 22% in 2021Q4 to 19% in 2022Q1 and 17% in 2022Q2.
Statistics on trade in merchandise and commercial services in value terms are interesting, as they reflect countries’ income from exports and the cost of imports.
Now, exports of primary products increased more than manufactures in Q2 2022 compared to the same period last year, especially for fuels and mining products.
Trade in manufactures rose 10 percent year-on-year in the last quarter, while agricultural products rose 13 percent and fuels and mining products 60 percent.
According to WTO data, the value of merchandise trade also increased 32% between the first half of 2019 and the first half of 2022, while the value of fuels and mining products rose nearly 70 percent.
In July 2018, the United States and China began imposing tariffs on approximately $34 billion of each other’s exports.
Subsequently, the United States imposed tariffs on an additional $216 billion of Chinese goods, and China imposed tariffs on an additional $76 billion of U.S. goods.
Negotiations are currently underway to resolve the trade dispute.
Continued global trade tensions may result in the imposition of further tariffs or other geopolitical economic developments in the future.
Future actions by the U.S. administration or other countries, including China, with respect to tariffs or international trade agreements and policies remain unclear.