APEC Economies Warn of Growth Slowdown Amid Trade Tensions

Twenty-one Asia-Pacific economies, including the U.S. and China, issued a stark warning on May 15 about a looming growth slowdown triggered by escalating trade tensions. The Asia Pacific Economic Cooperation (APEC) forecasts a sharp decline in collective GDP growth—from 3.6% in 2024 to 2.6% in 2025—as retaliatory tariffs and policy uncertainty disrupt global commerce.

The tensions stem from aggressive U.S. trade measures under former President Donald Trump, which prompted reciprocal actions from trading partners. While temporary suspensions of tariffs have been enacted during negotiations, market stability remains fragile. The Ripple effects of such macroeconomic headwinds could indirectly pressure risk assets, including cryptocurrencies, as investors weigh safe-haven alternatives.