Everybody loses

Author: | Published: 28 Aug 2018

Political decisions are being made on the basis that there is a winner and a loser in all negotiations. After 18 months of little progress made in Brexit talks, UK headlines still insist that the EU would be the loser if there is no trade deal. Trump's recent rhetoric on China and Turkey has brought into focus whether a trade war can result in a winner, particularly after decades of increasing globalisation. But in truth, history proves that it can't.

The Smoot-Hawley Tariff Act in 1930 was originally intended to protect the US farm sector but was extended to 20,000 products from other industries. It led to a...