Donald Trump creates tariff turmoil amid a new Medieval politics

Donald Trump holds up a chart showing what tariff will be charged on imports from different countries around the world (Picture: Chip Somodevilla) | Getty Images

But last Wednesday's unveiling of his chart of tariffs at varying rates for different countries unleashed financial chaos around the world, sent stock markets plunging and left ordinary Americans fearful about how they were going to cope with higher prices.

And the worry is that the turmoil could escalate into a full-scale trade war as countries retaliate with tit-for-tat tariff increases. China has already hit back, accusing America of bullying and slapping a 34 per cent tariff on American products, matching the tariff Trump announced on China.

Donald Trump holds up a chart showing what tariff will be charged on imports from different countries around the world (Picture: Chip Somodevilla) | Getty Images

President Trump shrugs off the chaos, saying "medicine" is sometimes needed to fix things. He tried to suggest he was being "kind" by imposing tariffs at half the rate of the barriers other countries put up against American goods, but analysts said his calculations were questionable to say the least.

The UK, with a 10 per cent tariff, has escaped more lightly than most countries, including the EU, whose exports to the US will face a 20 per cent charge.

But Trump's claim that Sir Keir Starmer is "very happy" with the UK's treatment is an exaggeration. The Prime Minister may well be relieved it's not worse, but US tariffs still threaten to have a huge impact on the UK economy and could lead Chancellor Rachel Reeves to bring forward new tax increases.

The UK Government is hoping the president's famous love of a "deal" could see a UK-US trade agreement which would lift or ease the tariffs in return for concessions. But Trump’s unpredictability means no-one knows if that will happen.

And the speculation is that top of the list of US demands would be scrapping the digital services tax, a 2 per cent tax on revenues derived from UK users, which was an attempt to make big tech companies pay a fair share of tax in this country.

The US tariffs, together with America’s apparent shift of sympathy from Ukraine to Russia, are part of the new world order taking shape following President Trump’s return to the White House.

But perhaps even more alarming than the changing global alliances is the lapse into a Medieval politics where plans, policies, careers and even lives depended on the volatile whims of rulers.