World trade: Allianz Trade: Numbers decrease trade barriers

Despite the customs conflicts, states worldwide are introducing fewer new trade barriers worldwide after evaluating the Allianz Trade. Between the beginning of the year and May 9, 1,042 obstacles were used, the credit insurer said with Germany’s seat in Hamburg. Compared to the same period last year, this corresponds to a minus of 26.5 percent.

Under trade barriers are not only tariffs, but also explained export restrictions and subsidies, such as the Jasmin Gröschl, economist of the Allianz subsidiary.

In the United States, many subsidies under the inflation reduction act – one of a billion dollar subsidy program – were awarded last year. “And this has kept these general protectionist measures higher, so to speak, than this year,” said Gröschl. Suvations can act economically as trade barriers if they influence prices and thus the free competition of different providers.

Most tariffs are eliminated by the United States

Gröschl spoke of a “mixed picture”: The customs announcements by US President Donald Trump drove the public debate. “On the other hand, we also see many measures that are used significantly less at the moment than the tariffs.”

The number of import tariffs imposed worldwide has almost doubled in the previous year: it rose from 87 to 166. 95 of the 166 tariffs were eliminated. In the comparison period in the previous year, the United States introduced six tariffs.

Allianz Trade referred to the Global Trade Alert, which is a database led by the Swiss nonprofit organization St. Gallen Endowment.