It had the hallmarks of a reality TV cliffhanger. Until recently, many people had never even heard of tariffs. Now, there’s been rolling live international coverage of so-called “Liberation Day”, as US President Donald Trump laid out tariffs to be imposed on countries around the world. Trump announced all imports to the United States will be subject to a new “baseline” 10 per cent tariff. This is an additional tax charged by US Customs and Border Protection when products cross the border.

The baseline tariff is expected to take effect from April 5, and then higher reciprocal tariffs on individual countries from April 9. That leaves no time for businesses to adjust their supply chains. What might the next “episode” hold for the rest of the world? We can expect many countries to retaliate, bringing in tariffs and trade penalties of their own. That comes with risks. Vietnam will be among the hardest hit by reciprocal measures, with a 46 per cent tariff. China, South Korea and Japan will also feel the brunt of the newest announcement – all subject to new tariffs of between 24 and 34 per cent. The European Union is subject to 20 per cent.

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Many countries had already vowed to retaliate. In a recent speech, the president of the European Commission, Ursula von der Leyen, said “all instruments are on the table”. She also stressed that the single market is the “safe harbour” for EU members. Canada was apparently spared from the baseline 10 per cent tariff. But it still has to contend with previously announced 25 per cent tariffs on the automotive and other sectors.........

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