The UN trade and development’s (UNCTAD) latest global trade update makes it clear. Policy uncertainty, more than just tariffs, is the primary disruptor. Businesses can usually adjust to rising costs when they’re straightforward, but they struggle to plan when trade rules keep changing.
Per UNCTAD, the world is experiencing record levels of policy unpredictability, driven by geopolitics, competition between industries, and countries pursuing their own agendas through border measures.
What’s the result? The report lays it out—nervous capital, disrupted supply chains, and a trust deficit that’s eroding the once-solid foundations of international trade.
Global Tensions And Economic Challenges
This instability is rooted in the complicated dance between politics and economics. Governments are busy securing vital raw materials, addressing trade imbalances, and protecting their local industries. Simultaneously, they’re using trade policies to meet security needs or environmental targets. This shift turns trade into a tool for political maneuvering instead of fostering economic cooperation.
Import volatility surged even before the new tariffs were announced in April. Companies reacted …