Persistent policy uncertainty is raising landed costs. Importers advised to audit currency exposure immediately.
LONDON — Global trade volumes are facing a new period of friction as 2026 begins with a wave of "Tariff Turbulence." Major economies are reevaluating trade agreements, with proposed tariffs on intermediate goods rising sharply across critical corridors.
According to the WTO's latest quarterly outlook, global merchandise trade growth is expected to slow to 2.1% this year, down from the 3.5% forecast just six months ago. The primary drivers: unpredictable tariff escalations and retaliatory measures affecting sectors from automotive to textiles.
Key Impacts for Importers:
- US-China: A fresh round of tariffs targeting electronics and machinery components could add 15-25% to landed costs.
- EU-UK: Post-Brexit "friction costs" remain elevated. New customs procedures are adding 3-5 days to delivery times for just-in-time manufacturers.
- Canada-Mexico: USMCA compliance audits are intensifying, with non-compliant shipments facing retroactive duties.
Currency Exposure Risks:
Tariff uncertainty is not just a cost issue; it's a currency issue. As importers delay purchases or reroute supply chains, FX volatility spikes. The USD has strengthened 4% against a basket of EM currencies in Q1 alone, eroding margins for businesses that failed to hedge.
Unicorn Currencies Advisory:
We advise all importers to conduct an immediate audit of their open payables and currency exposure. For clients on the Unicorn Currencies platform, our Treasury Desk can model the impact of tariff scenarios on your specific trade lanes. Contact us to schedule a complimentary exposure review.
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About the Trade Wire
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