Trade tensions

Tariffs surging past levels of the 1930s impart a negative shock to global growth

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These are challenging times for the world economy, with the prospect of a full-blown trade war triggered by US President Donald Trump's imposition of 10% tariffs on all countries and reciprocal tariffs on those nations with which America has the largest trade deficits. Although he was forced to pause his reciprocal tariff agenda for 90 days, levies on China were raised as high as 145% for its retaliatory actions. Though Trump has been making some conciliatory noises in the past couple of days, the prospect of an all-out trade conflict between the two biggest powers is roiling the markets as policymakers and finance ministers from around the world are in Washington to attend the International Monetary Fund (IMF)-World Bank spring meetings this week.