Only a global ‘de-risking’ from the US can stop Trump’s trade war

US President Donald Trump is waging a trade war against the world with tariffs. He has imposed a 25 per cent tariff on some imports from Mexico and Canada, a 20 per cent levy on Chinese imports, and a 25 per cent duty on imported steel and aluminium.

He also plans to add a 25 per cent tariff on European goods and enact reciprocal tariffs for all US trading partners. And he has threatened to implement a 100 per cent tariff on goods from Brics countries – an alliance initially comprising Brazil, Russia, India, China and South Africa, and recently expanded to include several other economies – if they “play games with the dollar”.

The response to the blitz of tariffs and threats has been varied. Countries such as Japan and India have tried to pacify Trump with investment commitments and improved market access for US companies, in the hope of being spared.

Meanwhile, Britain, Mexico and Australia chose to effectively do nothing beyond expressing their grievances, presumably fearful that any countermeasures would provoke Trump’s zero-tolerance retaliation.