MANY FEAR that a new cold war between America and China could divide the world economy into rival geopolitical camps. But President Donald Trump’s recent tariff threats defy geopolitical logic, hurting both friends and foes. He will hit China with an additional 10% duty, on top of existing tariffs, and he is itching to impose a steep 25% duty on America’s two close neighbours, Mexico and Canada. (On February 3rd Mr Trump announced that the tariffs on Mexico and Canada would be paused for one month.) The levies are meant to punish the three countries for their trade surpluses with America and their failure to stop the flow of illicit drugs into the country.
