Volatility Soars As Global Trade War Escalates
Volatility continues to sweep across asset classes after the Trump administration’s “reciprocal” and retaliatory tariffs took effect last night, ratcheting American import taxes up to levels last seen in the immediate aftermath of the Civil War. The freezing of trade flows between the US and China bears a stark resemblance to the breakdown in relations between the West and the Soviet Union that led to the Cold War. US tariffs on imports from China have soared: with the average tariff rate sitting close to 20 percent ahead of Trump’s inauguration, and 10 percent added in February, another 10 percent in...