In principle, the rules of trade are simple. The economic concept involves the buying and selling of goods or services.
Whenever a trade deal is done, the buyer s expected to compensate the seller. So far, so good. In a more global context, things can get a lot trickier when those buying or selling goods feel unfairly treated by the other party. This can happen when certain protectionist measures are in place, often involving tariffs on imports of selected goods. Such duties sometimes trigger countermeasures, potentially leading to what economists would call a trade war.
A new set of US tariffs on Chinese goods are set to go into effect on September 24. By next week, over $250 billion dollars worth of products from China will be levied with an extra duty. The Trump administration is calling for concessions on rules for foreign investors and intellectual property protection. But some feel that Washington could be shooting itself in the foot.