US President Donald Trump has once again turned to tariffs as a key tool in reshaping America’s trade relationships. His plan for reciprocal tariffs ~ where each country is taxed based on its own trade policies ~ appears to be a continuation of his economic nationalism. While Mr Trump argues that this strategy will correct trade imbalances and encourage domestic manufacturing, history suggests that such an approach carries serious risks, including economic instability and potential retaliation from trading partners.

At its core, the policy is based on the idea that many countries impose higher tariffs on American goods than the US does on theirs. By “leveling the playing field,” Mr Trump aims to pressure other nations into reducing their trade barriers or face equally high tariffs when exporting to the US. Countries like India, Vietnam, Thailand, and the European Union are likely to feel the immediate........

© The Statesman