In December 2024, global trade achieved an unprecedented milestone, reaching nearly $33 trillion, marking a 3.3% annual growth. This surge was primarily driven by a 7% increase in trade services, contributing an additional $500 billion to the global economy.

However, this positive trajectory is shadowed by escalating geopolitical tensions. Notably, China initiated an antitrust investigation into U.S. chipmaker Nvidia, intensifying the semiconductor conflict between the two nations.

Concurrently, the European Union and Mercosur finalized a significant free trade agreement after 25 years of negotiations, aiming to create one of the world’s largest free trade zones.

These developments underscore the complex interplay between economic growth and geopolitical dynamics, highlighting the challenges and opportunities in the current global trade environment.

How do you think these geopolitical shifts will impact global trade? Share your insights below!