For all the proclamations of the end of free trade, the global flow of goods and services has reached new highs in recent years, and the global trade-to-GDP ratio remains substantially higher than it was in 2000. While tariffs pose a major challenge to the system, they could also be an impetus for pragmatic reforms.
GENEVA – Global trade is facing its biggest test since World War II. Far-reaching tariffs introduced by the United States in early April – many of which were soon paused – have roiled trade and spilled over into financial markets. Investment and cross-border demand have already cooled as wary businesses and consumers sit on their hands.
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