War footing
We had dared to hope he wouldn’t get around to it, but US President Donald Trump has just repeated his promise to weaponise American tariff barriers. His threat of a 25% impost on imported steel and 10% on aluminium is, at this point, not official, but it has raised the possibility of a prosperity-stifling global trade war, rattled the world and prompted talk of a backlash. The US has huge trade deficits not only with China – now at NZ$18.2 billion – but also with large trading blocs including the European Union. At the mention of tariffs, the latter has threatened retaliatory moves on flagship American products such as bourbon whiskey, Harley-Davidson motorbikes and Levi’s jeans. In response, Trump is threatening European carmakers with a tax on imports. Meanwhile, China is considering…