Ineffective Trump: The world finds alternative to US tariffs

According to American economist Michael Pettis, the global trade system had been in a deep crisis long before the administration of US President Donald Trump introduced new import tariffs. In his column for Foreign Affairs, Pettis argues that instead of unilateral protectionist measures, there is a more effective alternative — the development of a new international agreement, conceptually similar to ideas proposed in the mid-20th century by British economist John Maynard Keynes. On April 2, Trump signed an order introducing so-called “reciprocal” import tariffs, which immediately intensified trade tensions between the US and other countries, especially China. As a result, the US import tariff rate on Chinese goods soared to a record 145%, while American exporters to China faced tariffs of 125%.