PRESIDENT Donald Trump’s announcement of sweeping tariffs on imports from nearly every country upended the global trading order and plunged markets into turmoil. It left countries scrambling to respond by either imposing counter levies or seeking negotiations to secure lower rates. The US stock market lost $5.4 trillion within two days of the announcement while global stock markets lost $5tr as fears intensified about a global recession. The prospect of a full-blown trade war shook investor confidence. The IMF warned this would significantly affect already sluggish global economic growth. The head of America’s central bank warned increased tariffs would lead to “higher inflation and slower growth”.

Using emergency powers, Trump slapped so-called “reciprocal tariffs” on America’s trading partners that ranged from baseline 10 per cent to 50pc, an action that did not discriminate between friend and foe. The steepest tariffs were imposed on Asian countries with China initially facing 34pc (added to previous levies and an additional 50pc it took the net rate later to 104pc). EU was subjected to a blanket 20pc levy. Trump’s justification rested on flimsy grounds — that this will boost the US economy by reducing its trade deficit, bring manufacturing and jobs home, promote investment in the country, raise revenue to finance deep domestic tax cuts, and protect American businesses and workers. Most of these assumptions are deeply flawed but the Trump administration rejected the view that the measures would hurt US industries and lead to........

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