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...