Colonial trade refers to the exchange of goods and resources between European powers and their colonies during the 16th to 18th centuries. This trade involved raw materials from the colonies, such as sugar, tobacco, and cotton, which were shipped to Europe. In return, European countries sent manufactured goods, including textiles and tools, back to the colonies.
The trade system was often regulated by mercantilism, where colonies existed primarily to benefit the mother country. This led to the establishment of trade routes, such as the Triangular Trade, which connected Europe, Africa, and the Americas, facilitating the exchange of goods and enslaved people.