Global Trade Dynamics: Allianz Trade Reports Decline in Trade Barriers

The landscape of global trade is witnessing a notable shift, with a report from Allianz Trade indicating a decrease in the overall number of trade barriers worldwide. Despite the ongoing challenges of tariffs, the data reveals that countries have been implementing fewer new trade restrictions.

According to the analysis conducted by Allianz Trade, a credit insurance provider based in Hamburg, there were a total of 1,042 trade barriers imposed globally from the beginning of the year until May 9. This figure marks a significant reduction of 26.5% compared to the same timeframe in the previous year.

Trade barriers encompass not only tariffs but also export restrictions and subsidies, as explained by an economist from Allianz. The report highlights that while import tariffs have seen an increase, particularly in the United States, other forms of trade restrictions have diminished.

For instance, in the past year, numerous subsidies were issued under the Inflation Reduction Act in the U.S., a substantial funding initiative aimed at stimulating economic growth. This influx of subsidies has contributed to maintaining a higher level of protectionist measures compared to the current year.

Furthermore, the report notes that the number of new import tariffs has nearly doubled over the past year, rising from 87 to 166 globally, with the U.S. imposing 95 of these tariffs. In stark contrast, only six tariffs were introduced by the U.S. in the same period last year.

Allianz Trade's insights are derived from the Global Trade Alert database, which is managed by the St. Gallen Endowment, a Swiss non-profit organization. This comprehensive database tracks trade measures implemented by various countries, providing valuable information for understanding global trade dynamics.

In summary, while some nations are adopting new tariffs, the overall trend indicates a decline in the introduction of new trade barriers worldwide. This development presents a complex picture of international trade, characterized by both protective measures and a gradual reduction in restrictions.