External pragmatism, internal reforms can turn US tariffs into opportunity

Any sectoral costs of a US trade deal must be compared to the costs of not having a deal. External pragmatism coupled with internal reforms can yet turn this impasse into an opportunity

The global trading order has been upended more dramatically than even the sceptics had envisioned under Trump 2.0. A multilateral, rules-based system has been uprooted and replaced with coercive bilateral mercantilism. What’s worse, tariffs have been weaponised for reasons far beyond trade. From fentanyl to judicial rulings in sovereign countries, to purchases of crude, to geopolitical proclivities — everything is now fair game. 

The implication is a byzantine spaghetti bowl of tariffs imposed by the United States. Consequently, the US effective tariff rate is creeping up towards 18 per cent — levels last seen in the 1930s. But US equity