The article discusses the implications of a recent trade war, emphasizing that trade conflicts yield no winners. While the UK received a relatively lower tariff on exports compared to other countries, the 25% duty on cars threatens significant job losses. The author argues that this protectionist turn signifies the death of globalization, driven by misguided nostalgia for a past economic model. There are concerns over potential flooding of the UK market with cheap goods as domestic manufacturers struggle, leading to possible tax increases and spending cuts that could further hinder economic growth.
Nobody wins a trade war. You can lose it by greater or lesser degrees: you may be one of the luckier casualties. But that's about as good as it gets.
Globalisation is dead, protectionism is back, and all to satisfy one man's delusions that life was better in the 1800s before income tax was invented.
But even lucky Britain still emerged with a 25% duty on cars that the Institute for Public Policy Research (IPPR) estimates could cost 25,000 jobs.
More tax rises and spending cuts lie ahead, given what this may do to already stuttering hopes of growth.
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