Global Trade This Week – Ridiculous but Real
Week ending 27 September 2025
If global trade was a TV series, this week felt like a crossover episode: WTO forecasting an AI-powered future, China making dramatic trade policy moves, the U.S. dropping tariffs like Oprah handing out cars… and some surprisingly good news for shippers.
Here’s what went down — fact-checked, sourced, and a little ridiculous.
WTO’s New Favourite Buzzword: AI
The WTO’s World Trade Report 2025 says artificial intelligence could supercharge trade by 34–37% and pump up global GDP by 12–13% by 2040.
Sounds like magic… but here’s the fine print: without digital infrastructure, poorer economies risk being benched while the big players sprint ahead.
China: “We’ll Drop the Perks”
In a surprise twist, China announced it will forego its “developing country” privileges at the WTO in future negotiations. That means no more automatic special treatment when bargaining.
Translation: Beijing is signalling it wants to look more like a trade heavyweight than a rule-bender.
The U.S. Tariff Tsunami
Washington went full “Tariff Time” this week with fresh announcements:
· 25% on imported heavy trucks
· 50% on kitchen cabinets & bathroom vanities
· 30% on upholstered furniture
· Up to 100% on certain pharmaceuticals, unless the maker is building U.S. factories
(All effective October 1, 2025.)
Oh, and don’t forget: a 15% tariff on EU autos and auto parts kicked in retroactively from August 1 — confirmed on Sept 24. So if you thought your car was expensive before… buckle up.
Freight Costs: Some Good News
Amid the tariff storm, ocean freight rates are finally giving exporters a break:
· India → U.S. East Coast: $2,000 per 40-foot container, down 33% from $3,000 in early July.
· Shanghai → U.S. West Coast: $1,646 per container, down 31%.
· Shanghai → U.S. East Coast: $2,557 per container, down 23%.
Lower shipping costs may help exporters mitigate some of the impact from rising tariffs — a rare bright spot in an otherwise challenging week.
Bottom Line
This week was all about AI optimism, China levelling up, U.S. tariffs hitting like plot twists, and freight costs finally easing. For SMEs and exporters, the advice remains: stay nimble, watch tariff timings like a hawk, and factor shipping costs into every decision.