The Trump administration’s decision to impose tariffs on all its trading partners, and at much higher rates on China, threatens the end of the post-war trading system that America led.

Having endured the horrific loss of life and destruction of World War II, 23 countries, led by America and including Australia, formed the General Agreement on Tariffs and Trade – the GATT.

Its purpose? To avoid World War III.

The GATT’s members reasoned that it was far better trading with each other than invading each other. Through freer trade, countries would become economically interdependent and mutually prosperous.

These countries had learned the lessons of the Great Depression, which was deepened and prolonged by the tariff policies of America, – the so-called Smoot-Hawley tariffs of 1930 – and retaliation by other countries.

Now the Trump administration is openly rejecting the principles and benefits of free trade, espousing instead that America will be made great again by erecting new tariff walls.

It sees two major benefits – lots of government revenue to help pay down massive government debt, and the re-shoring of manufacturing into rustbelt swing states such as Pennsylvania, Michigan and Wisconsin, which it won in the 2024 election.

But warning signs of........

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