Seogwipo, South Korea – The Asia-Pacific Economic Cooperation (APEC) group has warned of a significant trade slowdown in 2025, as escalating U.S. tariffs weigh on exports and economic growth across the 21-member bloc. The forecast was released during APEC’s trade ministers’ meeting on South Korea’s Jeju Island.
APEC expects regional exports to grow just 0.4% in 2025, a steep drop from 5.7% the previous year. Economic growth is also projected to slow to 2.6%, down from 3.3%. APEC attributed the downturn to reduced global demand—especially for manufactured and consumer goods—and growing uncertainty over trade measures, which are also affecting the services sector.
More than half of the APEC economies have been impacted by tariffs introduced under the Trump administration. Although average tariff rates in the region had dropped from 17% in 1989 to 5.3% by 2021, the recent measures have reversed some of that progress.
In a possible sign of easing tensions, U.S. Trade Representative Jamieson Greer held bilateral talks with Chinese envoy Li Chenggang on the sidelines of the conference—days after the two agreed to reduce steep tariffs during face-to-face discussions in Geneva.
APEC’s policy director Carlos Kuriyama emphasized that the ripple effects of U.S. tariffs extend beyond goods to services and financial markets, warning that conditions have not returned to pre-April levels.
Greer is also scheduled for bilateral meetings with trade counterparts from South Korea, New Zealand, and other Asian nations. The summit is part of a broader lead-up to the APEC Leaders’ Summit in Gyeongju, South Korea, later this year.
APEC accounts for roughly 50% of global trade and 60% of world GDP.
