UK must be smarter to cope with tariffs imposed on a whim

DONALD Trump has resumed his aggressive tariff agenda by announcing a dramatic increase in levies on steel and aluminium imports to the US. The increase, from 25% to 50%, has once again rocked global markets as businesses around the world question how much these chaotic measures are rooted in sound economic policy.

- Esther Krakue

While the US president insists his aim is to “secure the future of the American steel industry”, the rest of the world is less convinced. His latest move is disquieting markets, blindsiding businesses, and triggering retaliatory threats from confused allies who are increasingly exasperated.

In the midst of all this, the UK has been granted a so-called “carve-out”. British metals will remain subject to the original 25% tariff, so we’re technically no worse off.

But let's not kid ourselves, celebrating our exemption as a diplomatic triumph is a little pathetic, especially when you consider we're not exactly a major steel exporter to the US.

Trump's trade moves are less the product of a coherent economic doctrine and more like a game of high-stakes whack-a-mole. For our politicians to interpret this moment as a post-Brexit victory misses the wider, and far more serious, picture.

The volatility of Trump’s strategy leaves businesses, including those in America, paralysed.

COMPANIES that rely on steel and aluminium imports, such as Independent Can Co. in Maryland, which manufactures decorative tins, are halting investments, raising prices, and reconsidering their product lines altogether.