The US has decided – again – to upend the global trading system. With the latest raft of tariffs just beginning to kick in, and after a week in which markets worldwide fell precipitously, the Trump administration announced that it would be suspending high tariffs on nearly 60 countries for 90 days.
The announcement is only a partial reprieve. High tariffs on Mexico, Canada and China, as well as on global imports of steel, aluminium and automotives, remain, as does a 10% baseline tariff on all imports. US tariffs remain the highest they have been since the Great Depression, at levels unprecedented since the modern trade system was created after the second world war.
Before the pause, the UK was already in line for the 10% rate – which some commentators described as a Brexit benefit when compared to the EU’s prospective 20%.
