JETRO published the "World Trade Investment Report 2025," providing a comprehensive analysis of the current situation where multilateralism is wavering and global business resilience is being tested.
The report consists of three chapters. Chapter I, "World and Japan's Economy and Trade," provides detailed analysis of the impact on the global economy following the inauguration of the second Trump administration. Since the administration took office in January 2025, uncertainty surrounding U.S. additional tariff measures has increased significantly, and the IMF downgraded its global economic growth forecast in April 2025.
The report highlights the acceleration of supply chain reorganization, with companies increasingly adopting "friend-shoring" and "near-shoring" strategies. U.S. trade policy has intensified protectionist tendencies not only with China but also with traditional allies, creating new challenges for multinational corporations' business strategies.
Chapter II examines "Regional Economic Partnership Dynamics," analyzing how various regional trade agreements are responding to changing global trade patterns. The report notes that while the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership) continues to attract new members, the effectiveness of multilateral frameworks is being questioned due to increasing bilateral tensions.
Chapter III focuses on "Investment Flows and Technological Competition," examining how technological decoupling between major powers is affecting global investment patterns. The report emphasizes that restrictions on technology transfer and foreign investment in critical sectors are becoming more stringent, forcing companies to reconsider their international strategies.
For Japanese businesses, the report recommends diversifying supply chains, strengthening technological capabilities, and building resilient business models that can adapt to changing geopolitical landscapes. It also stresses the importance of maintaining economic partnerships with like-minded countries while navigating an increasingly fragmented global trading system.