Colonial trade refers to the exchange of goods and resources between European powers and their colonies during the 16th to 19th centuries. This trade often involved raw materials, such as sugar, tobacco, and cotton, being shipped from the colonies to Europe, where they were processed and sold. In return, European countries sent manufactured goods, such as textiles and tools, back to the colonies. This system was crucial for the economic growth of both the colonies and the European nations. It also led to the establishment of trade routes, including the infamous Triangular Trade, which connected Europe, Africa, and the Americas, facilitating the exchange of goods, enslaved people, and resources.