What across-the-board tariffs could mean for the global economy

FORMER president Donald Trump blames the global trading system for inflicting a long list of ills on the US economy including lost jobs, closed foreign markets and an overvalued dollar.

The remedy, he insists, is simple: tariffs. Trump, the Republican nominee for president, has repeatedly said he would raise tariffs if elected. China, a geopolitical and economic rival, would face an additional 50 or 60 per cent tariff on its exports to the United States. He has also floated the idea of a 10 per cent surcharge on exports from the rest of the world.

Although smaller than the percentage proposed for Chinese exports, an across-the board tariff has the potential to deliver a much more devastating jolt to world trade, many economists warn.