The costs of global trade war are huge

The Trump administration's introduction of sweeping import tariffs on steel and aluminum raises the real possibility of a global trade war. The effects would be felt everywhere, but especially in the world's poorest countries, and everything from the current global recovery to the Sustainable Development Goals could now be in jeopardy.

According to an old 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 per cent on steel and 10 per cent on aluminum. The levies will affect not just China, but also Canada, Mexico, and the countries of the European Union.