US President Donald Trump’s tariffs two-step has thrown the world into turmoil, threatening livelihoods and raising new challenges for an international economy made complacent by the obvious though unequal benefits of globalisation.
By the end of the week, Trump had imposed a 145% tariff on China. Beijing replied with 125%, calling it a “numbers game ... turning itself into a joke”. In acting as he has, Trump joins a long list of US isolationist and populist leaders for whom tariffs historically served to excite popular opinion while roiling the world.
This time around, of course, the new elephant in the room is China. Its leader, Xi Jinping, has yet to make a call to Trump to suggest a deal. Unencumbered by the popular will, Xi knows China can endure whatever hardship Trump may impose.
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