THE US President Donald Trump has threatened to wage a trade war against countries he perceives to have an unfair trade advantage to correct the trade deficit of his country. He wants to throw up protectionist barriers so that manufacturing returns to the US, and more Americans get jobs that are currently being outsourced. So far, he has imposed steep tariffs against imports of steel and aluminium, and slapped additional tariffs on 1,300 goods imported from China. He has complained about India’s trade policies and made it more difficult to get a H1B (temporary work) visa, which was used heavily by the Indian IT services companies. He has also threatened to wage trade wars against the European Union (EU), and other countries.
In turn, China has retaliated by imposing its…