APEC Warns of Stagnant Export Growth Amid Trade Tensions

The Asia-Pacific Economic Cooperation (APEC) issued a warning on Thursday regarding the sluggish export growth expected this year due to U.S. tariffs, as representatives from the U.S. and China met during the assembly. The 21-member bloc anticipates export growth of just 0.4% compared to last year's 5.7% increase, according to a regional trends report unveiled at the 2025 trade ministers' meeting held on South Korea's Jeju Island.

Moreover, APEC has revised its regional economic growth prediction downward from a previous 3.3% to 2.6% for this year. According to an APEC statement, the sharp decline in trade growth is attributed to decreasing external demand, particularly in the manufacturing and consumer goods sectors, alongside growing uncertainties surrounding goods-related policies impacting service trade.

The broad tariffs imposed by the Trump administration have impacted over half of the APEC members. This shift follows a period of significant trade expansion since the forum's inception in 1989, when average regional tariffs were reduced from 17% to 5.3% by 2021. The ongoing dialogue between U.S. Trade Representative Jamieson Greer and Chinese envoy Li Chenggang marks promising progress towards alleviating trade frictions between the world's largest economies.

(With inputs from agencies.)