Capital Economy, Business and Finance
Donald Trump has launched a full-scale assault on global trade and imposed universal tariffs of 10 per cent on America’s trading partners, rising to additional tariffs of 34 per cent for China and nearly 50 per cent for developing countries such as Vietnam and Lesotho.
During a blockbuster speech in the White House Rose Garden, Trump said America had been “looted” and officials added that he had “little appetite for haggling over lower tariff rates”.
Retaliation from partners and rising prices for US consumers are two inevitable consequences, although exactly how things will unfold next is anyone’s guess.
The UK, which faces a 10 per cent levy that rises to 25 per cent for the automotive industry, is likely to stomach its proscription without complaint.
This decision may affect relations with harder-hit allies such as the EU, which is preparing possible countermeasures. Downing Street says that negotiations on a US-UK trade deal continue.
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