An example of this trade volatility is shown by US imports in Q1 2025 and Q2 2025, when volumes increased 30 per cent year-over-year (YoY) in March but then contracted to -2.8 per cent YoY by June, as highlighted in the latest ‘Fitch-20 Economic Monitor’.
With an average US effective tariff rate of 16 per cent, it expects global trade to slow further in the coming months. At a regional level, export volumes in the two months to June slowed in advanced economies and China but recovered in Korea and Australia. Exports from Mexico, a major trading partner of the US, were flat in Q2, Fitch said in its non-rating action commentary.
Import growth slowed sharply in Brazil from 16 per cent in Q1 2025 to 4 per cent in Q2 2025, as past monetary tightening continues to weigh on domestic demand. In India, import volume growth rebounded from almost -13 per cent YoY in Q1 2025 to 11 per cent YoY in Q2 2025, while in Mexico it was flat.
ALCHEMPro News Desk (SG)
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