The global economy is showing signs of stress. The policies of the American administration might almost have been designed to make these worse. President Trump has announced that steep tariffs will be imposed with effect from today on imports of steel and aluminium from the European Union, Canada and Mexico.
There is nothing good to be said of this policy. It will damage economic relations between the United States and three of its biggest trading partners but also harm the American economy by raising prices of imports. Overall it will have approximately zero effect in terms of boosting American jobs or reducing the country’s trade deficit. All it will accomplish is to depress trade volumes and inflame international economic relations.
The tariffs amount to 25