Should India Be a Silent Spectator of Great Trade War of 2018 ?

Abstract

The word "War" always creates fear in our mind. Be it of any kind, direct war, indirect war like Trade war, Cold war etc. Wars are fought for some reason. However, it is seen that once the war ends, not only the looser but, the winner also has to pay the price of war. A trade war starts when a nation attempts to protect the domestic industry and its economy (by levying import taxes, antidumping duties, ban on product import etc). In the short run , this protection policy shows positive result by giving a competitive advantage to domestic producers of that product. As the domestic prices would be lower by comparison, they would receive more orders from local customers. As their businesses grow, they would add jobs. But in the long run, it has negative impact on all countries involved. It also triggers inflation when tariffs increase the prices of imports. In this article, we will discuss about a trade war between two world giants i.e . USA and China, which has started from January 2018 and is estimated to continue till 2019 .Jack Ma, the chairman of Alibaba Group Holdings Ltd . said that the trade war between USA and China is going to last longer and have a bigger impact than most people think. He also said that the dispute could last 20 years.