Across the world, markets are plunging as they respond to the global tariffs Donald Trump unleashed from the White House rose garden last night – with the president’s top economist describing the falls as ‘short-term bumps’. The pound passed $1.30 for the first time in six months while stocks in Tokyo fell 4 per cent. On opening, the FTSE 100 fell nearly 2 per cent, despite the slightly more favourable 10 per cent levy we face compared to the 20 per cent Trump hit Europe with. How bad could these ‘bumps’ get for the US though?
Trump returned to office promising tax cuts. But however he may spin his new protectionist tariffs, many are clear that in fact they are huge tax rises. Analysts from JP Morgan this morning described the measures as ‘the largest tax increases since 1968’ – bringing in $400 billion in extra revenue. Those costs – ultimately paid by American consumers – could add 1.5
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