The US administration has dubbed 2 April as Liberation Day. It is the day when America said it will unleash a volley of import tariffs on both friends and foe. Levies of up to 25% have been mentioned. But judging by the track record of this new administration, it could be all talk and very little action. But investors are nevertheless frightened, and understandably so. The imposition of levies can be highly destabilising. What’s worse is that we have no idea which country or what products could be hit. Could it be pharmaceuticals? Could it be motor vehicles? We have no idea. So, it is the fear of the unknown rather than the tariffs themselves that has rattled the markets. What we do know is that import tariffs, if they do become a reality, can be inflationary. The idea that the exporting country will pay the tariffs highlights just how naive the US administration is. Import tariffs are borne by the importing country....