HOW US TARIFFS HAVE CHANGED GLOBAL TRADE FLOWS, Pg17

Key Highlights:

• The Trump administration imposed tariffs in 2025 to reduce the US trade deficit.
• Imports of Chinese electronic goods into the US decreased in the first 9 months of 2025.
• The US increased imports from ASEAN countries like Vietnam, and India strengthened its position in electronics.
• UN economists advise analyzing trade data in volume terms due to price fluctuations in commodities like steel, precious metals, and oil.

Detailed Insights:

• The tariffs led to a significant decline in the import of Chinese goods, particularly in the electronics sector, reflecting a direct impact of the policy.
• ASEAN countries and India have emerged as alternative sources for electronic goods, indicating a shift in global supply chains in response to the US tariffs.
• Analyzing trade data in volume terms is crucial to account for price variations and accurately assess the real impact of tariffs on trade flows.
• The shift in trade flows could have long-term implications for the competitiveness of different countries and regions in the global market.

Key Concepts Involved:

• Tariffs: Taxes imposed on imported goods, increasing their price.
• Trade Deficit: The amount by which a country's imports exceed its exports.
• Global Supply Chains: International networks connecting production, distribution, and consumption of goods and services.