The World Trade Policy Uncertainty Index surged to a record 84,305 in June 2025, up from 14,606 in June 2024, according to UNCTAD. This sharp rise reflects growing unpredictability in global trade policies, which is increasing costs, unsettling financial markets, and disproportionately impacting low-income economies and small firms. In early 2025, US import volatility rose even before new tariffs took effect, as companies adjusted by stockpiling goods and shifting to faster, costlier shipping methods. The uncertainty extends beyond trade ports, causing exchange rate fluctuations, tighter capital flows, and higher borrowing costs. Small exporters in developing countries face greater challenges due to limited access to credit, inefficient logistics, and low-value exports, exacerbating their vulnerability. The unpredictability also strains government finances by limiting investment and social development funding. UNCTAD emphasizes the need for advance notice of policy changes, clear data-driven trade measures, and international coordination through bodies like the WTO to restore stability, reduce retaliatory actions, and support global trade growth and development. (Updated 2 Sep 2025, 11:04 IST; source: link)