Apec warns of stalling trade due to tariffs as China, US officials meet

The Asia-Pacific Economic Cooperation (Apec) grouping warned on May 15 that exports from a region that accounts for around half of world trade will slow sharply in 2025, and barely grow at all, in the wake of US tariff announcements.

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SEOGWIPO, South Korea — The Asia Pacific Economic Cooperation (Apec) grouping warned on May 15 that exports from a region that accounts for around half of world trade will slow sharply in 2025, and barely grow at all, in the wake of US tariff announcements.

The 21-member bloc convened an annual session of trade representatives ahead of a leaders' summit in 2025, with top US and Chinese trade envoys meeting on the sidelines following high-stakes talks earlier in May in Geneva that sought to de-escalate a bitter trade war.

Apec projected that exports in the region would rise by only 0.4 per cent in 2025, compared with 5.7 per cent growth in 2024, in an analysis report released at its 2025 meeting of ministers responsible for trade on South Korea's resort island of Jeju.

The bloc also cut its regional economic growth forecast for 2025 to 2.6 per cent from 3.3 per cent previously.

"Trade growth is set to decline sharply across Apec due to lower external demand, particularly in manufacturing and consumer goods, while rising uncertainty over goods-related measures weighs on services trade," the group said in a statement.