Donald J. Trump has started his political journey aiming at protectionism and making 'America Great Again'. He advocated the theory of high tariffs to control imports, to have more jobs for Americans and substantially promoting the...
moreDonald J. Trump has started his political journey aiming at protectionism and making 'America Great Again'. He advocated the theory of high tariffs to control imports, to have more jobs for Americans and substantially promoting the exports. Trump emphasized on the strong connection between jobs and international trade. He criticized some of the free trade agreements like North American Free Trade Agreement (NAFTA) and Trans-Pacific Partnership (TPP). US President's Trade policies promote mercantilism by using the phrase 'Smart Trade Not Stupid Trade'. His prime focus is protectionism against foreign competition. On August 18, 2017, President Trump asked the U.S. Trades Representative (USTR) Robert Lighthizer to commence an investigation under Section 301 of the Trade Act of 1974 into the government of China's acts, policies, and practices related to technology transfer, intellectual property right (IPR), and innovations. Following a thorough investigation of available proof, USTR, prepared findings showing that, among other acts, policies, and practices, China uses biased licensing requirements to transfer technologies from U.S. companies to Chinese companies. These laws, policies, practices, and actions may impede United States exports, deprive United States citizens of fair honorarium for their innovations, divert American jobs to workers in China, contribute trade deficit with China, and undermining American manufacturing, services, and innovation. The Trade Wars between the world's two largest economies were initiated on these grounds. The current paper focuses on trade retaliations between US and China and its impact on rest of the world in general and India in particular.