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impact of us tariffs 

Trade wars: assessing the damage

August 2018

Patrick Zweifel, Chief Economist

The trade war has started to claim its victims. We add up the damage so far – on both sides of the barricades.

The global trade war is heating up. To-date, US President Donald Trump has pledged new tariffs on over USD870 billion of foreign goods, with around 10 per cent of those already implemented.To-date, the announced tariffs cover a third of all US imports.

trump's tariffs
US tariffs table
Source: Pictet Asset Management, Peterson Institute for International Economics (PIIE), FT, The Hill. Data as of 02.08.2018.
The rest of the world, however, is not taking the US trade attack lying down. China, Mexico, the European Union and Canada have implemented retaliation measures. Although the overall effect is more modest  so far covering just USD53 bn of US goods  for some products the impact is set to be significant.
hard hit
US goods most affected by retaliation tariffs
US goods hit by tariffs
Source: Pictet Asset Management, Peterson Institute for International Economics (PIIE). Data as at 02.08.2018

If no truce is reached, the toll on the world economy will only get bigger, especially with officials on both sides of the barricades talking about the possibility of yet more measures .