Global Trade in Flux: Trump’s Policies, Shipping Shifts, and Economic Signals

Donald Trump’s inauguration today marks a pivotal moment, reigniting discussions on his trade policies. Despite first-term tariffs aimed at curbing US trade deficits, the deficits persisted as companies shifted imports from China to Mexico and Vietnam. His administration shattered decades of bipartisan support for free trade, fueling a US-China trade war that cost American soybean growers crucial export market share. Yet, China remains the dominant supplier of US consumer technology imports, underscoring the complex interdependence between the two economies.

Global tanker freights are expected to increase in 2025 as the US sanctions and geopolitical disputes. However, most of the profits are expected to be collected by the newbuild tankers which have the ability of dirty tankers to switch to clean and reverse in a much shorter duration than ever before.

Is the Red Sea becoming safe again? Since 2023, the Houthis have attacked more than 100 ships in the Red Sea, which increased freight costs due to rerouting. However, with the ceasefire in Gaza, it is expected that Yemeni Houthi fighters will announce a halt in attacks on ships in the Red Sea. Shipping routes can change, and we might see a drop in freight costs.

Unexpected drops in shop sales increased the worries over the UK economy. The food sales sank to the lowest point in more than 10 years. Despite the low food sales clothing shops and department stores boosted their sales.

Stay up-to-date with MSR International with business-related topics.

Sources:

Reuters

Hellenic Shipping News

BBC