While there is a considerable body of literature on the role of interstate war on trade, the literature has generated limited knowledge on how independence affects international trade. We argue that violent independence affects a state's trade through different short and long-term processes. In the short term, peaceful independence maintains existing colonial institutions and trade ties with no disruption, while violent independence disrupts trade with all parties. However, in the long term, violent independence sets in motion three mechanisms that improve trade performance: signaling credible commitment to economic autonomy, engaging in institutional development, and forcing industrial transformation through necessity. Our analysis of interstate trade covering all countries in the post-World War II era shows that states emerging from violent independence achieve better trade performance than peaceful ones over time and supports our causal mechanisms.