“Trade wars are easy to win,” Donald Trump reassured Americans when he launched stiff tariffs on Chinese exports. Then in rapid fire he re-imposed sweeping sanctions on Iran, ramped them up on Russia and sent Turkey’s currency into a tailspin with tariffs on steel and aluminium exports.
So far first blood to the United States. Even China has found that its huge trade surplus makes it more vulnerable to US measures than the US economy is to counter-measures from Beijing. The sharp falls in the rouble, Iran’s rial and the Turkish lira are all testimony to America’s status as the world’s financial heavyweight.
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