The big problem with a trade war is that nobody can win it

Companies will lose profits, workers will lose jobs, and governments will lose revenue, and the trading system

According to an African proverb, “When elephants fight, it is the grass that suffers”. The same is true for full-blown trade wars: When major economies clash, developing countries will be among the hardest hit.

On June 1, the US administration imposed import tariffs of 25% on steel and 10% on aluminium. The levies will affect not just China, but also Canada, Mexico, and the European Union.